Annual Report 2014: Zardoya Otis S.A

ZARDOYA OTIS S.A.
annual report
2014
I ndex
Chairmans Report
Key Data
Stock Market Data
Management Report on the Zardoya Otis Group
11
Other Relevant Information
22
Consolidated Financial Information
45
Board of Directors Committee & Commission
97
General Meeting of Shareholders
99
Financial Statements of the Last Five Years
101
Network
104
Annual Corporate Governance Report
109
Report of the Auditors (FIICS)
163
Annual Report on Director Compensation
167
Consolidated Text of the By-laws

of Zardoya Otis, s.a.
183
Regulations of the General Shareholders'

meeting of Zardoya Otis, s.a.
195
Zardoya Otis, s.a.

Regulations of the Board of Directors
207
Free translation
of the Annual Report
originally issued in Spanish
for the year:
12.1.2013 to 11.30.2014
presented by the Board of
Directors at the General Meeting
of Shareholders held on May,
25, 2014 upon the first call, or
May 26, 2014 upon the second call.
Annual
Report
2014
Zardoya Otis S.A.

Golfo de Salnica, 73
28033 Madrid - Espaa
www.otis.com
Presidente
Key Data at November 30
(Fiscal year end)

(Consolidated figures in millions of euros)
% variance over prior year
ANNUAL RESULTS
2014
2013*
Profit before tax
220.2
218.9
Profit before tax
154.0
150.8
181.1
194.0
EBITDA
242.6
247.0
278.0
289.2
Cash-Flow
176.2
177.8
197.9
209.2
Dividends paid
147.2
147.7
176.7
191.5
SHAREHOLDERSEQUITY
2014
2013*
2012
2011
2010
14/13
Capital y Reserves (**)
412.1
407.1
238.5
229.5
244.0
1.2
2012
261.0
2011
2010
276.1
291.8
14/13
13/12 12/11
(5.5)
11/10
0.6
(16.1)
(5.4)
205.1
2.1
(16.7)
(6.7)
(5.4)
305.5
(1.8)
(11.1)
(3.9)
(5.3)
221.0
(0.9)
(10.2)
(5.4)
(5.3)
194.3
(0.3)
(16.4)
(7.7)
(1.5)
(*) Restated figures in application of NIC 19-R

13/12 12/11 11/10
70.7
3.9
(6.0)

(**) Includes Treasury Stock

SALES DATA
2014
2013
2012
2011
2010
14/13
New installations
Service
39.4
546.9
53.8
579.9
74.3
602.8
93.7
631.0
115.5
666.7
(26.8)
(5.7)
(27.5)
(3.8)
(20.7)
(4.5)
(18.8)
(5.3)
Total Exports
Export to Portugal (*)
160.5
(7.9)
133.4
(7.9)
144.6
(12.5)
109.2
(14.8)
94.4
(13.7)
20.4
(0.1)
(7.8)
(37.0)
32.4
(15.8)
15.7
8.1
152.7
125.5
132.1
94.3
80.6
21.7
(5.0)
40.0
17.0
739.0
759.2
809.1
819.1
862.8
(2.7)
(6.2)
(1.2)
(5.1)
Net Exports (without Portugal)

Total
(*) Deducted as they are already
included in consolidated sales.
13/12 12/11
11/10
NEW INSTALLATIONS
2014
2013
2012
2011
2010
14/13
13/12 12/11
11/10
Orders received
76.9
75.5
78.6
90.4
114.1
1.8
(3.8)12/(13.1)
(20.8)
Backlog
72.8
76.1
66.6
87.6
107.6
(4.2)
14.2
(18.5)
(24.0)

SERVICE DATA
Units under maintenance

Maintenance centers
2014
2013
2012
2011
2010
284,418 284,940 270,082 268,915 268,147

371
372
375
364
374
14/13
13/12 12/11
11/10
(0.2)
5.5
0.4
0.3
(0.3)
(0.8)
3.0
(2.7)

PLANTILLA
2014
2013
2012
2011
2010
14/13
Total manpower
5,137
5,399
5,332
5,425
5,602
(4.9)
13/12
12/11
1.3
(1.7)
11/10
(3.2)
Stock Market data at December 31
(euros)
SHARE CAPITAL
2014
2013*
2012
2011
2010
Amortized shares
Number of shares before share capital increase 418,241,060 385,241,499 366,896,666 349,425,397 332,786,093
Number of shares (Non-monetary contribution)
0 16,913,367
Splits
1x25
1x25
1x20
1x20
1x20
Share capital increase (bonus) ratio
434,970,702 418,241,060 385,241,499 366,896,666 349,425,397
Number of shares at December 31
0.10
0.10
0.10
0.10
0.10
Par value
43.5
41.8
38.5
36.7
34.9
Share capital (millions)
PROFIT PER SHARE
2014
2013*
2012
2011
2010
Profit after tax

P.A.T. adjusted by capital increase
Adjusted P.A.T. Variance %
EBITDA per share
EBITDA adjusted by capital increase
Adjusted EBITDA variance %
0.354
0.354
2,1
0.558
0.558
(1.8)
0.361
0.347
(16.7)
0.591
0.568
(11.1)
0.470
0.416
(6.7)
0.722
0.639
(3.9)
0.529
0.446
(5.4)
0.788
0.665
(5.3)
0.587
0.471
1.5
0.874
0.702
2.0
DIVIDEND PER SHARE*
2014
2013
2012
2011
2010
Dividend per share

Dividend adjusted by capital increase
% variance adjusted dividend
0.352
0.352
(0.31)
0.367
0.353
(16.81)
0.482
0.424
(7.74)
0.548
0.460
(1.48)
0.584
0.467
(1.89)
(*) Calculated with dividends charged to F.Y. and partial distribution of share premium, with number of shares on December 31 th
PRICE PER SHARE
2014
2013
2012
2011
2010
Price
Price adjusted by share capital increase
% adjusted price variance
9.20
9.20
(27.2)
13.15
12.64
32.2
10.80
9.57
7.0
10.60
8.94
5.6
10.54
8.47
(18.7)
ANNUAL YIELD OF ONE SHARE (%) (*)
2014
2013
2012
2011
2010
2.667
(27.240)
(24.563)
3.400
32.189
35.589
4.542
6.981
11.524
5.199
5.598
10.797
4.291
(18.685)
(14.394)
Dividend
Increase in market value
Total
(*) Calculed with dividends charged to F.Y. and partial distribution of share premium,for a share owned on January 1st and valued at last price on December 31 th
TRADING DATA
2014
2013
2012
2011
2010
Market capitalization (millions)

Trading frequency (%)
Effective value traded (millions)
4,002
100.0
1,494
5,500
100.0
691
4,161
100.0
570
3,889
100.0
831
3,683
100.0
1,167
STOCK MARKET RATIOS
2014
2013
2012
2011
2010
PER (Price/net profit: nmber of times)

Pay-out % (Dividends paid / net profit)
26.0
95.6
36.5
97.9
23.0
97.6
20.0
98.7
18.0
94.8
STOCK MARKET RATIOS
2014
2013
2012
2011
2010
4,002
5,500
4,161
3,889
3,683
331
3,670
1,107.6
(27.2)
331
5,168
1,559.6
32.2
331
3,829
1,155.5
7.0
331
3,558
1,073.6
5.6
331
3,352
1,011.4
(18.7)
10,280
3,000
7,280
242.7
3.7
9,917
3,000
6,917
230.6
21.4
8,168
3,000
5,168
172.3
(4.7)
8,566
3,000
5,566
185.5
(13.1)
9,859
3,000
6,859
228.6
(17.4)
Zardoya Otis, S.A.

Market capitalization at December 31 ( Millions)
Market capitalization at January 1, 1990 ( Millions))
(Start of IBEX-35)
Market capitalization variance since January 1, 1990
% Variance market capitalization since January 1, 1990
% inter-annual variance market capitalization
IBEX-35
IBEX-35 at December 31
IBEX-35 at start (January 1, 1990)
Variance IBEX-35 since January 1, 1990
% Variance IBEX-35 since January 1, 1990
% inter-annual variance IBEX-35
Management Report
of Z ardoya O tis
(Consolidated Accounts fiscal year 2014)
(thousands of euros)
Presentation
of the Annual
Financial
Statements
The consolidated annual financial
statements of the Zardoya Otis
Group at November 30, 2014 have
been prepared in accordance with
the International Financial Reporting
Standards (IFRS) and interpretations
(IFRIC) adopted in the European
Union and in force at said date.
11
Business Evolution
P rofit
and Loss
The consolidated profit before tax at the 2014 year

end was 220.2 million euros, with a 0.6% increase in
respect of 218..9 million euros obtained in 2013 after
the impact of NIC 19 adoption.
The EBITDA amount (operating profit + depreciation
+ amortization) in 2014 was 242.6 million euros, 1.8%
lower to the 247.0 million achieved in 2013.
The consolidated profit after tax attributable to
shareholders (net profit after non-controlling interest)
was 154.0 million euros, 2.1% more to that of 2013,
affected by the re-calculation of deferred taxes as a
consequence of the enforcement of Law 27/2014 on
Corporate Income Tax.
The consolidated Cash Flow (net profit + depreciation
+ amortization) at the end of 2014 was 176.2 million
euros, 0.9% lower to that of 2013.
In 2013 figures included the consolidation as of
February of the results of the Enor group; in the fiscal
year 2014 Enor contributes with a profit before taxes
of 9.0 million euros and an additional assets
amortization of 3.9 million euros.
Sales
Millions of euros
1000
900
863
-2.5%
Total
Sales
The total consolidated sales figure

reached 739.0 million euros, in
comparison with the 759.2 million
euros of 2013, or a drop of 2.7%.
809
-1.2%
819
-5.1%
9.3%
11.5%
16.3%
759
-6.2%
739
-2.7%
16.5%
800
700
20.7%
600
500
77.3%
77%
74.5%
76.4%
74.0%
400
The contribution of the 2014 sales of

Enor group to the consolidated sales
was 41.7 million euros.
300
200
13.4%
11.5%
2010
9.2%
2011
New Equipment
100
7.1%
2012
5.3%
2013
Service
2014
Export
ZARDOYA OTIS S.A.
N ew
Sales
Work completed: The value of work completed

in 2014 was 39.4 million euros, lower by 26.8% in
relation to 2013, consequence of the already known
lower activity in the construction sector in general
and especially in residential construction.
In 2014, New Sales represented 5.30% of total
billing (7.09% in 2013).
Orders received: The amount obtained in 2014
for orders received of New Installations, was 76.9
million euros, 1.8% above the figure obtained in
2013.
E xports
Sales totalled 152,7 million euros, with an increase
of 21.7% on the figure obtained last year. In 2014,
exports represented 20.66% of the Group's total
consolidated revenue (16.53% in 2013).
E mployee
Headcount
At the end of 2014, Zardoya Otis Group employees

were 5,137, which represent a decrease of 4.9%,
compared with 2013.
Backlog of unfilled orders, the backlog of unfilled

orders at the end of 2014 decreases by 4.2% over
2013, reaching the figure of 72.8 million euros.
S ervice
Sales: Overall consolidated Service sales were
546.9 million euros, 5.7% less than in 2013, mainly
affected by the moderation of level of consumer
prices and the lower volume of completed
modernization and repair projects
Service activity represented in 2014, 74.0% of
total Group revenue.
Units under maintenance of the
Zardoya Otis Group:
In 2014 the number of units ended in line with
the preceding year. In total, the maintenance
portfolio reached by the Group is 284.418 units
after the integration of the Enor group units.
13
Dividends
Millions of euros
200
-1.9%
-1.5%
180
-7.73%
160
Dividends and distribution of share Premium in 2014 were:
-31%
-16.41%
140
Data
Charged to Shares entitled

to the dividend
Gross per
Share
147.2
Total Gross
Dividend
120
10 April
0.100 euros
1st a cta. 2014
402,154,866
40,215,486.60
10 July
0.080 euros
Distribution
of share Premium
402,154,866
32,172,389.28
10 October
0.090 euros
2nd a cta. 2014
418,241,060
37,641,695.40
12 January
0.090 euros
3rd a cta. 2014
418,241,060
37,641,695.40
147.7
100
176.7
At November 30, 2014, interim dividends were

declared for the year ended on said date for an
amount of EThs 76 787 (EThs 77 850 in 2013).
These interim dividends were paid for shares 1 to
418,241,060 (1st and 2nd interim dividend).
Additionally share premium was distributed partially
to shares 1 to 418,241,060 on July 10, 2014, for
an amount of Eths 33 459. Thus the total number
of shares entitled to dividends rose excluding the
treasury stock.
60
194.3
40
20
147,220,853.05
TOTAL DIVIDENDS PAID IN 2014
80
191.5
2010
2011
2012
2013
93.5 %
100.5 %
96.3 %
97.6 %
94.8 %
(Pay-Out %)
Millions of euros
98.7 %
98.0 %
100,1 %
Dividends and partial distribution of share premium

declared in 2014 totalled 147.2 million euros, with
a reduction of 0.3% in comparison with the
preceding year and represent a pay-out of 95.6%
of the consolidated profit for the year attributable
to shareholders of Zardoya Otis, S.A, continuing
with the Company's policy of distributing to
shareholders an amount close to a 100% pay-out.
Profit after Tax vs. Dividends Paid in the calendar year

105%
2014
97.9 %
95.6 %
85%
210
202.1
201.1
193.6
200
205.1
198.1
194.3
194.0 191.5
175.9
190
181.1 176.7
65%
150.8 147.7
154.3 155.0
45%
180
170
176.0
154.0 147.2
143.5
160
150
140
134.2
130
120
110
25%
100
90
80
70
5%
60
50
40
-15%
30
2005
2006
2007(*)
20
2008
2009
2010
10
2011
2012
2013
(*) Before Extraordinary Results

Profit after Tax
Dividends paid
in the calendar year
Pay-Out (%)
2014
Evolution of Capital
C apital
Increase
The capital increase approved by the General

Meeting of Shareholders on May 26, 2014 -by
means of bonus shares in the proportion of one
new share for each twenty five old outstanding
ones- took place from July 15, 2014 until July 30,
2014.
Treasury Stock
As of November, 30 2014 Zardoya Otis, S.A
maintain 11.103 treasury shares (29.176 at 2013
year-end). The above mentioned figure includes
427 shares received in the bonus issue.
Once the Share Capital increase has been

completed, the Capital Stock is 43,497,070.20
Euros, is represented by 434,970,702 ordinary
shares, with a par value of 0.10 euros each.
The new shares were authorized for trade on the
Madrid, Barcelona, Valencia and Bilbao Stock
Exchanges, on September 12, 2014.
15
Evolution of Zardoya Otis

on the Stock Market
The quoted price at the 2014 year end was 9.20

euros per share, which meant an decrease in value
of 27.2 %, compared to the adjusted price of 2013,
while the IBEX value went increase by 3.7 %.
The share price is adjusted for comparative purpose
as a consequence of the 1 x 25 bonus issue that
took place in July 2014.
Stock Indexes-% of Variation

Base 100 = 1 / 1 / 1990 (Starting IBEX-35)
1800%
1,559.6%
1600%
1400%
1,266.7%
1,155.5%
1,107.6%
1,011.4%
1200%
1,073.6%
1000%
800%
600%
400%
298.0%
228.6%
185.5%
242.7%
230.6%
172.3%
200%
0%
2010
Zardoya Otis-%
Market Value Variation
2011
2012
IBEX-35 Index-% Variation
2013
2014
Historical Stock
Market Data
(euros)
Shares price
Variance
%
Market
Pay-Out
Capitalization
%
(Millions)
Last
Price
Adjusted
Price
dec-74
37.68
0.03
dec-90
63.71
0.81
5.7
13.8
80.1
350.2
61.30
0.93
15.5
14.0
75.5
404.4
52.23
0.79
(14.8)
11.0
79.8
344.6
Year
dec-91
Capital increase
and Splits
1x5
dec-92
P.E.R.
14.3
13.3
dec-93
1 x 10
81.74
1.36
72.2
17.0
80.8
593.1
dec-94
1 x 10
82.28
1.51
10.7
17.4
57.4
656.8
dec-95
1 x 10
79.63
1.61
6.5
17.0
98.4
699.2
dec-96
1 x 10
90.75
2.02
25.4
19.5
100.8
876.5
dec-97
1 x 10
106.68
2.61
29.3
22.0
80.8
1,133.4
dec-98
split 5 x 1 and 1 x 6
26.62
3.79
45.6
28.9
84.7
1,649.8
dec-99
split 2 x 1 and 1 x 10
9.77
3.06
(19.3)
21.2
89.9
1,332.1
dec-00
1 x 10
9.35
3.22
5.3
19.7
94.0
1,402.3
dec-01
1 x 10
10.42
3.92
21.5
20.7
90.8
1,703.6
dec-02
1 x 10
12.55
5.16
31.8
22.9
88.9
2,245.2
dec-03
1 x 10
16.50
7.47
44.6
28.0
87.4
3,247.1
dec-04
1 x 10
18.87
9.39
25.8
31.2
91.7
4,084.9
dec-05
1 x 10
21.40
11.72
24.7
35.5
93.5
5,095.8
dec-06
1 x 10
22.98
13.84
18.1
39.0
100.5
6,019.2
dec-07
1 x 10
19.37
12.83
(7.3)
31.7 (*)
dec-08
1 x 10
12.69
9.25
(27.9)
20.0
96.3
4,022.0
dec-09
1 x 20
13.61
10.41
12.6
22.4
98.0
4,529.2
dec-10
1 x 20
10.54
8.47
(18.7)
18.0
94.8
3,682.9
dec-11
1 x 20
10.60
8.94
5.6
20.0
98.7
3,889.1
dec-12
1 x 20
10.80
9.57
7.0
23.0
97.6
4,160.6
dec-13
1 x 25
13.15
12.64
32.2
36.5
97.9
5,499.9
dec-14
1 x 25
9.20
9.20
(27.2)
26.0
95.6
4,001.7
100.1(*) 5,581.0
(*) Without Extraordinary Result
17
Forecast Evolution
In 2014 has continued the decrease in sales as a result

of the general economic environment and in particular
in the difficulties in the construction sector. Therefore,
the backlog of unfilled orders is 1.8% increase than
last year, while in Service the reduction in sales is only
5.7%.
At the end of 2014, New Installation sales represented
only 5.3% of total while the principal activity, Service
accounted for 74.0% of the total and Exports with a
strong increase of 20.66%.
General description of the

risk policy of the Group
The Group's activities are exposed to a variety of

financial risks: market risk (including foreign
exchange risk, fair value interest risk and price risk),
credit risk, liquidity risk and cash flow interest rate
risk. The Group's global risk management program
is focused on the uncertainty of the financial
markets and trying to minimize the potential
negative effects on the Group's financial
profitability.
Risk management is controlled by Group
Management in accordance with policies approved
by the parent company's Board of Directors.
Management assesses and hedges financial risks
in close collaboration with the Group's operating
units, in order to:
- Ensure that the most important risks are identified,
assessed and managed.
- Ensure an appropriate operating segregation of
the risk management functions.
- Ensure that the risk exposure level accepted by
the Group in its operations is in line with its risk
profile.
In note 3 of the account of the year 2014 is
presented the information with the following risks:
a) market risk:
a. risk of exchange
b. rate risk of price
c. risk of interest rate flows of cash and the
fair value
b) risk of credit
c) risk of liquidity
d) risk of the capital
The Audit Committee is responsible for periodically

reviewing the internal control and risk management
systems, so that the main risks are properly
identified, managed and disclosed, through control
devices that allow the main potential risks of the
Company and its Group to be evaluated and the
evaluation of the risk control systems, adapted to
the risk profile of the Company and its Group.
Also, Zardoya Otis, S.A. has an Internal Audit
Department, with systems and processes that are
intended to evaluate, monitor, mitigate or reduce
the Company's main risks by preventive measures
and alerts of possible situations of risk. The
Company has the risks that affect assets and
liabilities covered by the appropriate insurance
policies. Likewise, it has processes that ensure
control of any risk that may stem from trading
operations.
Conservative liquidity risk management implies
maintaining sufficient cash and marketable
securities and the availability of funding through
an adequate amount of committed credit facilities.
Group treasury aims to maintain flexibility in
funding by keeping committed credit lines available.
Management assesses and hedges financial risks
in close collaboration with the Group's operating
units
The Group has no significant concentrations of risk
with customers and there are no significant old
credit balances, nevertheless given the deterioration
in the economic situation, the Group has policies
in place to ensure that installation sales are made
to customers with appropriate credit histories and,
in addition, regular debt-monitoring procedures
are conducted by the departments involved in debt
collection.
19
Significant events
at November 30, 2014
In January, 2014 Zardoya Otis, S.A. acquired the

remaining 8.33% of the non-controlling interest
of the company Admotion, SL., thus completing
the 100% ownership of such company. The
payment was done using the treasury stock (18.500
shares).
In May 2014, the subsidiary Acresa Cardellach, S.L.
carried out a capital increase through a nonmonetary contribution of EThs 8.084 which was
subscribed by the entirety of the shareholders of
the subsidiary Montoy S.L., which after the capital
increase is 100% owned by Acresa Cardellach, S.L..
This transaction resulted in a change of participation
by Zardoya Otis, S.A. in the mentioned subsidiary
Acresa Cardellach S.L. holding directly the 94,57%
of shares and indirectly the same percentage on
Montoy S.L.
In June, 2014 Zardoya Otis, S.A. acquired 3.66%
of the non-controlling interest of the company
Puertas Automticas Portis SL., for an amount of
Eths 1.432, this transaction represents a change
in the Zardoya Otis S.A. participation that increases
to 93.83% ownership of such company.
In September 2014, Zardoya Otis, S.A. has acquired
90% of the share capital of Electromecnica Hemen
Elevadores, S.L. and 100% de Ascensores Hemen,
S.L., both companies dedicated to the maintenance
and repair of elevators in the provinces of lava,
Guipzcoa, Burgos and Navarra. The total cost of
the business combination has been determined
provisionally in EThs 9 888
ZARDOYA OTIS S.A.
The Group has adopted in 2014 retrospectively
In January 2015, Zardoya Otis, S.A. was informed
the modified IAS 19. Its effect is the elimination
of the conclusion of the syndication agreement
of the corridor approach and the recognition of
concluded in the frame of the Enor transaction
actuarial losses and gains when they arise; therefore,
between the two major shareholders of the
net equity as of November 30, 2013 increases by
company: United Technologies Holdings, S.A.S. and
Eths 11.823 corresponding to the initial recognition
Euro Syns, S.A. on August 3, 2012. The syndication
of the actuarial gains as mentioned of Eths 12.884,
agreement should end on the date in which UTC
and the effect of the recognition of the actuarial
owns shares representing 50.01% or more of the
gains and retained generated in the fiscal year
share capital of the company, which has been
2013 for Eths 1.061 and a reduction in profit of
notified on 12 January 2015 by UTH to the
the year for an amount of EThs 6.205.
Comision Nacional del Mercado de Valores by

means of the corresponding communication of
The enforcement of Law 27/2014 on Corporate
significant participation.
Income Tax requires the re-estimate of the figures

registered by the Group with an impact of a
reduction in deferred tax assets of EThs 3 907 and
a reduction of deferred tax liabilities of EThs 5 157.
Significant events
after the end of
the reporting period
On December 10, 2014 Zardoya Otis, S.A declared
the third dividend corresponding to 2014, third on
account of the fiscal year profit, for an amount of
0.085 Euros gross per share, resulting in a total
dividend gross of EThs. 36.972 (Note 8). Payment
of the dividend was done on January 12, 2015.
annual corporate
governance report
In December 2014 the subsidiary Puertas

Automaticas Portis, S.L. acquired 1.06% of the
The report annual of corporate governance of the
non-controlling interest of its own shares for an
financial year 2013, is part of the present
amount of Eths 394. These own shares were
management report.
amortized by means of a capital reduction at the

same date. The transaction represents a change in
This report is on page 109 of this annual report.
the Zardoya Otis S.A. participation that increases

from 93.83% to 94.83% ownership of such
company.
21
The Companys
Basic Principles
S afety
In 2014, the Safety, Health and Environment
Commitment signed by the Company's directors was
renewed, reinforcing involvement in the continuing
improvement of one of the basic pillars of Zardoya Otis.
This Commitment was supported from all the work
centres on February 25, on which Safety Day has been
celebrated for many years. In 2015, the slogan chosen
for the day was For all those who will need you
tomorrow, please work safely and look after the
environment today.
A sound Health, Work and Environment management
system implemented efficiently at all the work centres
and backed by the occupational risk prevention
certificates OHSAS 18001 and ISO14001 (environment)
allowed the accidentability results to improve for a
further year.
The innovative development of safer equipment, tools,

methods and work processes, together with the
continuing safety education that our technical employees
receive, the concern for enhancement of our products'
safety standards and the collaboration of our technical
personnel and customers, enabled us to reach our safety
targets.
Among the most significant aspects contributing to
these achievements were:
- Risk assessment in all processes, methods and
designs in order to establish preventive and
control measures.
- Installation of safety standards in the
maintenance units.
- Continuing education through monthly meetings
of each supervisor with his or her technical
ZARDOYA OTIS S.A.
personnel and courses on danger identification

in key aspects, such as work at height, electrical
risk, use of equipment and tools, load lifting
and suspension, office ergonomics and driving
risks, among others.
- Training audits on serious accident prevention
and certification of the technical personnel
and subcontractors.
- Monthly communication to the whole company
of all the result control metrics and the lessons
learnt from the analysis of incidents and audits.
- Analysis and investigation of incidents and
accidents to establish the preventive measures
to avoid recurrence.
- Awards and recognitions for safety
achievements.
These are the aspects that allow both our customers
and the users of our products and services to distinguish
us from the other companies in the sector and value
us favourably as one of the safest companies with one
of the most complete Safety and Health Management
Systems.
In fact, last year Zardoya Otis was recognized by
Ibermutuamur for its special importance in innovative
occupational risk prevention programs. During the
ceremony at which the diploma was awarded, Carlos
Alonso, Zardoya Otis's Safety and Works Manager,
spoke about the project Productivity with Present and
Committed People and the Company's objective: zero
accidents, zero tolerance.
Enor was another of the group companies to win an

award for its activities in the occupational risk
prevention field. The multiple actions that have taken
place over recent years (regular meetings, training,
assessments, implementation of a safety room, audits,
safety recognitions, etc.) led to an accidentability rate
of almost zero in the last year, which merited one of
the Prever 2014 National Occupational Risk
Prevention Awards. These awards have been conferred
annually since 1998 through the General Council of
Industrial Relations and Work Sciences (CGRICT) and
are a benchmark in the field, both in Spain and
internationally.
23
The Companys
Basic Principles
Ethics
In accordance with the 2014 Training Plan, all employees
received training on different aspects of the Code of
Ethics, distributed as follows:
On-line courses for employees with a computer and
intranet access
Annual in-person course imparted by members of
management to all employees
Course on information system security for employees
(1,232 people)
Launching at plants and regional offices of the Ethics
Tool Box training tool for workers and technical
personnel, where general concepts of the Code of
Ethics are shown once a quarter.
ZARDOYA OTIS S.A.
Regarding compliance with the Code of Ethics, all the

relevant employees completed the 2014 annual
certification of conflicts of interest on line, while
workers and technical personnel without access to a
computer did so through questionnaires.
All reports of breaches of the Code of Ethics, most of
which were received through the Dialogue program,
were analyzed and the appropriate measures were
taken to correct them where necessary.
Possible risks that could affect the company were
reviewed and assessed on a quarterly basis and 27
actions to mitigate them were defined and carried out
in their entirety. There was no deviation from the
forecast plan.
The International Trade Compliance export rules were
complied with and all the company's customers and
suppliers in 2014 were filtered to check their suitability.
S ervice
Excellence
Several years have passed since Zardoya Otis brought

this program into operation with the intention of
attaining maximum customer satisfaction. The Service
Excellence program started with an exhaustive training
calendar for all employees and gave rise to a corporate
declaration of eight commitments upon which the
Zardoya Otis's relationship with its customers and
users is based.
The maxim of customer satisfaction implies constant
evolution, not only of the product launched on the
market, but also of the quality in providing both the
preventive and corrective maintenance services. In a
competitive market where customer needs are changing
constantly, Zardoya Otis makes every effort to be near
to the customer when required and, in this respect,
we have the most extensive service office network in
the sector.
In this process of surpassing our customers'
expectations, we carry out telephone and written
surveys of more than 40,000 customers every year, in
order to find out, not only their degree of satisfaction
with the service provided, but also their concerns, how
we can help them, how we can improve At the end
of 2014, 96% of our customers had expressed their
satisfaction with the service received and recommended
us to other consumers as a provider.
The Customer Ombudsman, whose task is the receive,
analyze and provide a solution to customer complaints,
solves the cases that arise in an average of two days,
notifying the customer of the solution and ensuring
that it is put into practice.
25
Corporate Social
Responsibility
At Zardoya Otis, social sensitivity is a fundamental

aspect for both employees and shareholders and,
therefore, we are involved in different initiatives.
We collaborate with the non-profit organization
Special Olympics through the voluntary
involvement of a number of employees, who
collaborate to make it possible for different events
aimed at the social integration of disabled people
through sport to take place on a quarterly basis.
ZARDOYA OTIS S.A.
Specifically, the following activities took place

in 2014:
- In June, a day of hiking took place, oriented at
valuing and respecting the natural environment.
Sportspeople and 30 volunteers from the
company took part in this activity.
- In September, the II Unified Football 7 Tournament
took place, sponsored by Zardoya Otis. Six teams
formed by company volunteers and sportspeople
with intellectual disabilities participated.
- In November, the I Special Olympics Madrid
Unified Basketball Day was held at the facilities
of the Asociacin de Padres de Minusvlidos de
Iberia (Association of Parents of Disabled Children
of Iberia - APMIB) in Colmenar Viejo, sponsored
by the company. Five teams formed by Otis
volunteers, sportspeople with intellectual
disabilities and trainers took part in this event.
We combine our elevator technology with solidarity

and, in this respect, in 2014 Zardoya Otis signed
an agreement with the NGO Manos Unidos to,
among other activities, publicize the Campaign
against Hunger using the DMS screens installed in
the elevators. With this solidarity initiative, a
campaign intended to alleviate the nutritional
deficiencies suffered by the poorest developing
countries was given visibility.
Among other activities last year, Zardoya Otis
collaborated with the campaign conducted by the
Red Cross and the Madrid Metro to respond to
requests for school supplies for low-income families,
thus helping many children at the start of the
school year.
We also collaborated with the Fundacin Banco
de Alimentos de Madrid (Madrid Food Bank
Foundation) by collecting foodstuffs, thus assisting
the charitable organizations that provide attention
to those most in need through hostels, canteens,
welfare activities, etc.
Locally, Zardoya Otis and its employees participated
in a number of activities that expressed their
commitment to the community and the citizens.
27
Customers
Trust us
In the second half of 2014, for the first time since

the beginning of the crisis, a considerable and
sustained increase was noted in orders received
for activities related to the renovation of existing
buildings and, at the year end, the backlog of
unfilled orders was higher than that of the preceding
year.
Zardoya Otis obtained important contracts in the
service area, among which we can highlight the
two-year contract signed with the Ministry of
Justice for maintenance of its equipment at various
court premises throughout Spain. Attention should
also be drawn to the contracts awarded by the
University of Zaragoza, the Murcia Health Service
and the Quirn hospital network.
Among the unique buildings in which we installed
new equipment was the NH Collection Eurobuilding
Hotel in Madrid. After the remodelling it underwent
last year, one of the highlights of the decoration
is the two Otis GeN2 Flex panoramic elevators in
the area of the hotel's dome. These elevators are
fully integrated into the aesthetics of the building
and favour accessibility for mobility-impaired
people. The result achieved provides an overall
image of lightness, giving the sensation that the
elevators are floating in the air.
Another project that is at the centre of public
attention is the new Gourmet Experience that El
Corte Ingls opened at the end of the year at its
store in Calle Serrano, Madrid. The gastronomy it
offers brings together three informal concepts
created by three great chefs who have a total of
7 Michelin stars between them. Here, Zardoya Otis
installed two GeN2 Comfort panoramic units with
glass doors, fully integrated into the exclusive
atmosphere of the surroundings.
ZARDOYA OTIS S.A.
Lastly, the Zardoya Otis Group continued to

collaborate with the most emblematic building
that currently continues to be under construction
in Spain: Gaud's Basilica of the Holy Family. The
contract to install two hybrid elevators in the
sacristy of the Passion Faade was signed and we
are working on the design of another fully
panoramic elevator that will be installed inside
one of the towers of the apse of said faade.
A utomatic
Doors:
Continuing Growth
Portis, a group company engaged in the installation

and maintenance of pedestrian and garage doors,
has shown continuing growth since it joined the
group, crowning this achievement with average
increases of around 10% in its portfolio over recent
years.
Portis does not owe its growth only to the
confidence placed in it by new customers, but also
to the recognition of others who were already on
its portfolio and have continued to place their trust
in the company for their new installations.
Portis's product diversity has made it possible to
meet the needs of customers in every sector: hotels,
hospitals, distribution, shopping centres, etc., among
which we can highlight Makro, Ikea, Sol Meli,
Leroy Merlin and the ONCE (Spanish National
Association for the Blind).
29
Our Customer
Relationships
Zardoya Otis considers the relationship with its
us to hold a cycle of mixed training days for
customers to be a basic pillar in building up trust
property administrators and company sales
in and loyalty to our products and services. In this
personnel.
respect, we carried out a number of professional

and recreational activities in 2014, in order to keep
In this project, which was carried out throughout
our customers informed of all the new
Spain, in addition to explaining the value of the
developments in the company and the sector and
company's services, useful courses and discussions
to enable us to build closer professional and social
were held on key property administration issues,
bonds.
with the collaboration of expert speakers.
Training
These training days were a great success and, in
Cycle
for Property
Administrators
The conviction that, at a time when market

competition is increasingly demanding, we can
only continue to distinguish ourselves from the
competition and lead the market by explaining the
huge value-added of our products and services led
the light of the favourable comments they received,

we plan to repeat them in the future.
ZARDOYA OTIS S.A.
Lectures in
Professional
Training Forum
Recreational
Events
In 2014, the regional offices organized numerous

sports events in which more than a thousand
Company managers took part in numerous business,
customers participated. Our traditional golf
entrepreneurial and university forums to talk about
tournaments, a total of seven throughout Spain,
Zardoya Otis's experience in the different areas of
attracted those most faithful to this sport, who
its activity.
take the yearly opportunity to enjoy a relaxed

atmosphere and magnificent facilities.
The presence of speakers from the company was

requested by technical schools and universities,
The eight padel tournaments that we organize
associations of architects and technical architects,
each year attract an increasing number of players
property developers associations and even fire
of this ever more popular sport.
stations. Subjects like safety, the efficient renovation

of buildings, universal accessibility, new elevator
In addition to simple pleasure, these events are
technology and new developments in the legislation
intended to favour an atmosphere of proximity
were discussed by the Zardoya Otis experts at
among sector professionals, allowing for a more
multiple events, which were attended by more
personal and satisfactory day-to-day relationship.
than two thousand people interested in finding
To judge by the comments and congratulations
out about changes in the sector.
received, both objectives were surpassed.
31
A Solution for
Every Need
Otis GeN2 Flex:

Where four fit, six fit
Lack of space in buildings often does not allow a large
elevator car to be installed. To solve this problem, Otis
has designed the GeN2 Flex elevator, a model which
allows a car with capacity for 6 people to be installed
in the same hoistway in which only a car for 4 would
fit.
installation of an elevator in a space where this was

previously impossible. In newly-constructed buildings,
architects do not need to allow so much space for the
elevator in their designs and, at the same time, a larger
car will fit into less space. Or a larger elevator in the
case of a new one.
This is an elevator with all the advantages of GeN2

technology and, in addition to not requiring a machine
room, makes optimal use of the hoistway, maximizes
the space available and offers the possibility of
increasing the car's capacity by 50%.
Since this product belongs to the GeN2 family, the

Otis GeN2 Flex has minimal consumption, regenerates
energy and is available in a version with Switch
technology, which means that it can run on 220v
single-phase electricity, with a power requirement of
only 500W.
The Gen2 Flex elevator thus provides a great advantage

in existing buildings, irrespective of whether they
already have an elevator or not. In the former case,
the flexibility of this model allows the car to be changed
for a larger one that makes it possible to transport
people in wheelchairs or with impaired mobility. In the
latter, it allows the
Its installation in buildings without an elevator using

a freestanding modular structure has a minimal impact
on the surrounding architecture. Thus, this new elevator
combines maximum use of the size of the hoistway,
possibilities of access to floors with different
orientations and minimal consumption.
ZARDOYA OTIS S.A.
Digital Multi Screen:

an outside window in
the Elevator
All elevators for the national market that are
manufactured at our Legans facilities are equipped
with the Digital Multi Screen, a screen that works as
an intercom with videoconferencing.
With this device, the elevator is in permanent
communication with the service centre of Zardoya
Otis, where a team of more than 80 people provide
24-hour-a-day attention to customers and users,
ensuring their safety.
If someone is trapped in the car, the Digital Multi
Screen will put him or her into contact with the service
centre and they can see and hear the person providing
the attention, inspiring great confidence and peace of
mind. While the trapped person is conversing with the
employee, the service centre will contact the nearest
technical person for a speedy rescue.
The car device is also an indicator of position and
direction, enables the unit to be identified and allows
all kinds of contents to be broadcast.
Personalized
and
Special Elevators
Now that two years have passed since Enor was
acquired by the Zardoya Otis Group, the number of
orders placed for personalized and special elevators
has been multiplied by four, with orders for a value of
over 5 million euros.
Among the most significant contracts,
we can highlight:
Louvre Museum: 15 elevators, 6 of which are for
3,500 kg and 9 for more than 12 tonnes.
Auchan supermarkets: 10 heavy-load elevators
for various shopping centres in France.
Stavros Niarchos Foundation: for this cultural
centre located in Athens and designed by the
famous architect Enzo Piano, we are supplying
variable-frequency electromagnetic equipment
for a load of 12,900 kg. The doors measure
3x2.5 metres.
Regarding marine equipment, thanks to the cooperation
between different Otis companies worldwide, important
contracts were obtained in 2014. We can highlight the
two "flotels" that the Mexican oil company Pemex will
be building at two shipyards in Galicia: Barreras in Vigo
and Navantia in Ferrol.
The marine area's development and potential is obvious

from the evolution of elevator sales for this sector,
which grew by 20% in comparison with the preceding
year, exceeding 3 million euros in 2014.
33
A Solution for
Every Need
Otis GeN2 Switch:

a Sales Success
The launching of the GeN2 Switch model at the
The GeN2 Switch needs only a 220V single-phase
end of 2013 has, without any doubt, been one of
electricity supply to be installed and power of
Otis's successes over recent years. This elevator, in
500W in order to operate. Both characteristics
addition to incorporating GeN2 flat-belt technology
make it the perfect elevator for both new and
with a gearless machine 50% more efficient than
already-existing buildings.
a conventional one, is able to regenerate energy.

All these advantages, combined with the fact that
It is equipped with a system of accumulators that,
it is a product that was fully developed in Spain,
in the event of a cut in the power supply, allows
have been recognized by the market, making it a
autonomy for more than a hundred rides and, thus,
sales success, with 400 units sold in 2014.
its performance is currently unmatchable.
ZARDOYA OTIS S.A.
Finally, Zardoya Otis's R&D team, committed to the

company's environmental protection and energy saving
policy, developed the first solar elevator in the world
and launched it on the market. This new elevator
Otis
GeN2 MOD:
The advantages of
a New Elevator without
building Works
incorporates compatibility with photovoltaic solar

panels, which generate the energy required to operate
it, with the advantages of the Switch system. The
GeN2 Switch Solar runs on 100% clean energy, with
no CO2 emissions, and achieves a zero energy balance,
allowing users to forget about the electricity bill. Only
months after it was launched, the first 10 units have
been installed in Spain.
The launching of this new elevator on the market had
a great impact in the media, in both the general and
specialized press, and the innovative spirit and
As a result of the combined work of the service and

works teams, Zardoya Otis provides its customers with
the possibility of modernizing their old installations
with the latest GeN2 technology.
The change in the equipment's performance is
noticeable as from the first day, since the GeN2 MOD
solution guarantees noiselessness and smooth rides,
with precision -to the millimetre- in the stops. It
incorporates the Digital Multi Screen into the car's
aesthetics and allows energy saving of up to 80% in
comparison with the previous situation.
technological competence of the Spanish R&D team

was rewarded by the corporation at world level at a
ceremony held in Lyon, where Philippe Delpech gave
the Spanish management a diploma of recognition in
the Innovation category.
An additional advantage of this solution is that it

allows any elements of the old elevator that are in
good condition to be used. Therefore, the work is carried
out in a very short space of time and no building works
are required.
As a result, our customers have recognized
modernization with GeN2 as a star service and, in
terms of units sold, it showed growth of over 62% on
the previous year in 2014.
35
We Support the Architecture

of the Future
Traza Ciudad
Architecture Prizes
Last June, Zardoya Otis awarded the 'Traza Ciudad'
The jury, formed by Juan Herreros, an architect
architecture prizes for architecture students, which
and lecturer in Architecture at the University of
the company organizes in collaboration with the
Columbia in New York; Emilio Tun, an architect
Fundacin Arquitectura y Sociedad.(Architecture
and partner of the Tun and Mansilla studio; and
and Society Foundation).
Bernard Calleja, Zardoya Otis's Chief Executive

Officer, analyzed the 28 projects submitted by
These prizes are awarded for projects concerning
architecture students in Spain and Portugal,
a small urban fragment of a Spanish city. On this
evaluating originality, boldness and the contribution
occasion, the subject was the remodelling and
of creative architectural solutions.
revitalization of the Lavapis area in Madrid.
ZARDOYA OTIS S.A.
The winners were Elena Jimnez and Abelardo

Linares of the Seville School of Architecture with
a project entitled Macondo, which suggested the
construction of a central axis running from the
north to the south of the Lavapis area, with a
design that maximized the habitable area of the
buildings through a structure that occupied less
space at its base than in the elevated habitable
part, thus releasing public space for different uses.
The prize-giving ceremony took place during the
III International Architecture Congress, which was
held in Pamplona on June 11, 12, and 13 with the
title Necessary Architecture and which was
attended by people of great importance in
international architecture, such as lvaro Siza and
Dominique Perrault.
VI e dition
of the
Ascensores Enor
Architecture Prizes
Last November, the headquarters of Grupo

Ascensores Enor was the venue for the awardgiving ceremony of the VI Ascensores Enor
giving visibility to the best architecture carried out

in Spain and Portugal.
The Madrid architect Jos Mara Snchez won the
Gran Premio Enor for his work Perimeter Building
and Adaptation of the Surroundings of the Temple
of Diana in Mrida, Badajoz. Mara Gonzlez and
Juanjo Lpez of the SOL 89 studio were awarded
the Premio Enor de Arquitectura Joven (for young
architects) for the Catering School in the Old
Abattoir in Medina Sidonia, Cdiz.
The jury for these prizes was composed of the
architects Carlos Quintns, Juan Domingo -winner
of the Gran Premio Enor in 2011-, Juan Creus, Luis
Martnez and Fredy Massad and chaired by the
Pritzker prize winner Eduardo Souto de Mora.
The prize has grown in every edition, thanks to the
important support received from all the architects
that have participated. In this edition, with more
than 300 works submitted, attention can also be
drawn to the increase in private works in
comparison to public works, with more activities
aimed at the renovation and adaptation of existing
buildings.
Architecture Prizes, which have been being

organized since 2005 with the intention of
37
Zardoya Otis and its

Employees
Training
and
Professional Development
Zardoya Otis has a committed human team with talent
The bet on continuing education has been latent even
and dedication, which allows the company to adapt
in the most difficult years. Thus, in 2014, an average
to a complex and demanding environment. Our
of 35.87 hours of training per employee was imparted
employees form part of a solid project that bets on
on safety, ethics, technical training, quality, sales and
employment with good working conditions and
languages, among other subjects.
employee development through training, thus enabling

us to stand out and be more competitive in a very
As a novelty, last year the Zardoya Otis Group's new
complex environment.
on-line training platform, e-campus, was brought into

operation. On this platform, the company places a set
From Zardoya Otis, we bet on the development of our
of resources to develop different abilities and skills at
employees and the development of their careers at
the disposal of all its employees. In the first phase,
international level, exporting talent to other group
courses were available on a number of subjects: skills
companies.
training, office automation tools, stress management,

effective meetings, etc.
ZARDOYA OTIS S.A.
In the specific training area, the different individual

educational programs continued to be available, such
as the Employee Scholar Program, BIS University and
other skill development programs for employees
identified as having potential, training programs for
Otis Trainers, engineering software programs and
management programs for middle management.
In order to obtain better knowledge of our employees
and their needs, in 2014 special emphasis was placed
on the performance management of our employees,
using the different assessment tools that exist in the
company.
Social
Benefits
Zardoya Otis makes very different and varied social

benefits available to all its workers.
In 2014, the company continued with the flexible
remuneration system introduced in 2013, extending
this possibility to the associated companies that form
part of the Group.
The Support Unit continued to manage the requests
received and to provide support to many employees
in respect of disablement and accessibility.
The company offers grants for the specialized education
of workers' children with some kind of disability or
special need. Likewise, all employees with school- or
kindergarten-aged children receive a sum for education.
Other assistance available consists of loans for the
acquisition or renovation of homes or the availability
of personal loans. We also have a voluntary collective
insurance scheme that covers death, disablement and
retirement.
In addition to the economic benefits, enhancements
of some kinds of remunerated leave of absence are
provided, as well as specific health programs
(vaccinations, special diagnostic tests, anti-smoking
programs, etc.).
In 2014, the Medical Service launched the Walk for

your health campaign, with the objective that company
workers should improve their health through daily
exercise.
In order to favour our employees' sense of belonging,
more advantageous conditions are also offered in areas
related to leisure and services.
We
Listen to our
Employees
We listen to ourWe have different internal
communication channels, since our employees' opinions
are very important, There are several ways in which
the workers can let us have any opinions, suggestions,
considerations or complaints that they see fit.
Through the Suggestion Program, all our workers can
propose new ideas that can be used to improve any
process, product or service and prizes are awarded for
the best ones received.
In 2014, 500 suggestions were received and applying
them will lead to a forecast annual saving of 150,000
euros.
The Dialogue program is a communication channel
through which an employee may, on a fully confidential
basis, inform of any problem, complaint or noncompliance with the Code of Ethics of which he or
she is aware, both nationally and internationally.
In 2014, the employees gave their opinion through a
survey and, with their contributions and suggestions,
help us all to make a better company
Last year our collective labour agreement was extended
until December 31, 2016. Thus, we continue to
guarantee the stability of our workers' employment
situation.
39
A Process of
Continuing Improvement
Zardoya Otis was the first elevator company to be
business indicators, the objectives and score of each
certified under ISO-9001 (Quality Management
regional office are established, as well as its position
System), which it obtained with AENOR in 1992. Thanks
in the overall ranking. The same procedure is carried
to ISO-9001, we were also able to obtain certification
out for group associates. This tool allows us to consider
in compliance with the European Lifts Directive
each improvement initiative objectively, promote
95/16/EC, in accordance with the requirements
healthy competition and identify internal benchmarking
established for both elevators and safety components.
opportunities by recognizing and adapting the best

practices, attaining sustainable improvement, year
We were also the first maintenance company to be
after year, in the excellence score and the quality levels
certified with AENOR under Royal Decree 88/2013 in
perceived by the customer.
June 2013. Said Royal Decree establishes the

Supplementary Technical Instructions of the Elevating
ACE (Achieving Competitive Excellence) is the operating
Apparatus and Maintenance Regulations, known as
system that enables us to analyze and improve, with
ITC MIE-AEM 1, required for maintenance personnel
the intention of making the improvement sustainable,
in order to meet service requirements and undertake
with enhanced processes, in order to consolidate it.
important modifications to existing elevators for

approval by the authorities.
Implemented in all UTC group companies, ACE is fully

integrated into Zardoya Otis, confirmed by the
Likewise, we hold ISO 14001 certification
consolidation of Silver level in all the 2014 international
(Environmental Management System) and certification
audits and through improvement projects intended to
under the OSHAS 18001 standard (Occupational
solve problems -known as treasures- detect their
Health and Safety), which allow us to manage aspects
causes and improve the process, so as to increase the
concerning safety, health and risk prevention for all
company's capacity to surmount obstacles and attain
our workers in all our activities.
its objectives.
We renew these certifications annually through external
Focused on orienting our processes towards the
audits, which confirm that our management systems
customer efficiently in issues that contribute value-
are corrected focused on compliance therewith.
added, ACE enables us to analyze, improve, implement

and verify all our activities, structured into the processes
Zardoya Otis was the sector pioneer in seeking total
considered of key importance in improving our market
quality. In 2013, we celebrated 20 years of
presence and business results.
implementation of the excellence programs called

Regional Offices towards Excellence and Associates
towards Excellence, through which, by monitoring 12
metrics grouped into aspects concerning safety,
customer satisfaction, process improvement and
ZARDOYA OTIS S.A.
The ACE tools allow us to discover the improvement

opportunities in our activity and make use of the
competitive advantages that form part of our business
strategy. To do this, the monitoring of the main
indicators summarized in the Metrics Tower provide
visibility to the evolution of each parameter in respect
of the objective that is fixed annually for all the business
units: plants, regional offices, branches and head offices.
ACE
A colour criterion allows metrics that do not meet the
Certification
Program
objective to be identified and the prioritization of

activities to analyze a change in trend (if negative),
One of the key aspects for all the company that uses
implement actions and carry out monitoring in order
the ACE tools is training in these tools and this requires
to improve (through an action plan).
dedication in order to acquire the knowledge necessary

to allow them to be used to their best advantage in
ACE is the system that enables us to analyze and
the day-to-day work.
improve, with the intention of obtaining a sustainable

improvement, since the new enhanced processes must
With on-line access to the ACE Certification Program
be the support for its consolidation.
(ACP) established worldwide for the implementation

of and training in ACE, Zardoya Otis is making a great
effort in both theoretical and practical training in the
different ACE tools.
In 2014, Zardoya Otis acquired the objective of having
all its employees reach the basic Associate level. To do
this, a training plan, which will be completed in 2015,
has been established and this meant a total of 9,840
hours devoted to ACE training in 2014, with 100% of
employees (indirect) registered in the ACP and close
to 200 people who have now obtained the Associate
level certificate.
41
Internacional
Successes
In 2014, Zardoya Otis beat all records in relation to
Several factors were involved in achieving these results:
the number of units sold to Otis companies and agents

outside Spain: no less than 6,500 elevators, representing
21% more than in 2013.
Evolution of International
Sales (N. units)
7,000
6,500
6,000
5,389
5,000
4,115
4,250
2,000
1,000
2012
An increase in the number of countries that have

come to form part of our customer portfolio. From
the 105 countries that purchased from us in 2013, we
increased to 129 in 2015. Special mention should be
made of the Far Eastern countries (India, Indonesia,
Thailand, Vietnam, Philippines, Cambodia, Malaysia
and Singapore), to which we sold units for the first
time in our history.
4,000
3,000
2011
The expansion of the available product range. In 2014,

the Engineering Department developed a wide range
of products, expanded the existing load and speed
combination possibilities and made it possible to install
an elevator in a hoistway with a reduced pit or overrun.
2013
2014
The consolidation of our products in the Middle

Eastern countries. The construction boom in countries
like Saudi Arabia, Dubai or Bahrain, combined with the
preferences of the Otis companies for our product, as
well as the close commercial relationship with all of
them, meant that our sales in this region were more
than 2,000 units in 2014.
The increase in exports of the different elevator
components from the San Sebastin plant: almost
10% in GeN2 machines, 45,000 units of which were
issued.
Innovation and New

Products
Innovation is our way of working and, in 2015, we will
The San Sebastin plant has been reorganized in order
continue to add new technical developments to our
to better adapt its production to the needs of both
elevators to meet the demands and needs of our
the national and international markets. As part of this
customers and users.
process, the last geared machines were manufactured

in 2014.
In this respect, we are working on a new line of

aesthetics in keeping with modern architectural trends,
In addition, almost one million euros were invested in
meaning that our lifts are easy to integrate into the
implementing a new assembly line for GeN2 machines.
aesthetic surroundings of the new buildings.
This new development will mean that the entire

machine can be assembled on the same line, rather
We are also aware of the evolution of society and the
than assembling one part at the San Sebastin facilities
ageing of the population. These factors open up a new
and the engine at the Reivaj plant, as has been the
elevator market in single-family homes. The growth in
case up to now. Thus, the cost of the machine is
this type of home on the outskirts of the large cities
reduced, productivity is increased and there are
and the architectural barriers that exist in them, making
important savings in transport and handling.
it difficult for elderly people to move, have led us to

develop a low-consumption elevator model that is
Finally, compliance with the EN 81 20/50 standard
easy to install and respects the environment. This new
implies that our elevators will incorporate additional
elevator model will be launched in the next few months.
elements in the doors, the car roof, the car and the
pit, meaning that our equipment must be redesigned.
43
Consolidated Annual
Financial Statements
Audit Committee
46
Auditors Report
47
Consolidated Statement
of Financial Position
48
Consolidated Income Statement
50
of Changes in Equity
51
of Cash Flow
52
Notes to the Consolidated

Financial Statements 2014 and 2013
53
Board of Directors, Committee

& Commission
97
Agenda of General Meeting

of Shareholders
99
of the last five years
101
Network
104
Annual Corporate Governance Report
109
Report of the Auditors (FIICS)
163
Annual Director Compensation Report

for listed Corporations
167
Consolidated text of the

By-Laws of Zardoya Otis, S.A.
183
Regulations of the
General Shareholders Meeting
of Zardoya Otis, S.A.
195
Regulations of the
Board of Directors
207
45
Audit Committee
The Audit Committee met eight times in 2014, deliberating and providing favourable
reports to the Board of Directors on the following items:
1. Review of the quarterly reporting (interim statements or quarterly financial reporting)
sent to the National Securities Markets Commission (CNMV) and the Stock
Exchanges.
2. Reports on payment of the quarterly dividends charged to 2014 profit and a
monetary distribution of share premium.
3. Review, with the Companys external auditors, of the individual Annual Financial
Statements and the consolidated Annual Financial Statements of the Group for the
year ended in 2013 and the interim statements related to the first hast of 2014, which
were subsequently formulated by the Board of Directors.
4. Review of the Annual Corporate Government Report for the year 2013 and the
supplementary information to the report, with the description of the Internal Control
Systems and Risk Management, in relation to the issuance of financial information
reporting (ICFR) process applied in the company.
5. Review of the report prepared by PwC related to the assessment of the level of
compliance with company requirements referred to above, in terms of internal controls
and risk management systems.
6. Review of Annual Report on Director Compensation for the year 2013.
7. Review of related-party transactions.
8. Proposal to the Board of Directors for appointment of external auditors of Zardoya
Otis, S.A. and the consolidated Group for the year 2014.
9. Review of the Report on External Auditors Independence for the works performed
regarding 2012 year end financial statements.
10. Director compensation.
11. Monitoring of 2013 Internal Control Program and review of 2014 program, along
with supervision of the Internal Control over Financial Reporting (ICFR) system.
12. Review of the risk control system: operational, technological, financial, legal,
reputational and strategic risks.
13. Review of the process audit conducted in accordance with the requirements for
listed groups in the USA (Sarbanes Oxley), wich was first performed in the Zardoya
Otis Group in 2004.
14. Analysis of the scope of the information to be sent together with the Annual
Corporate Governance Report in relation to the Internal Control over financial
Reporting (ICFR) system.
15. Bonus issue and the closure thereof.
16. Review of the confidential communication channels put in place by the Group,
together with the relevant action plans to be carried out.
17. Conflicts of interest and annual certification.
18. Review of business combinations.
19. Review of the impairment test performed over goodwill.
Zardoya Otis, S.A. and Subsidiaries

Consolidated Statement of Financial Position
At November 30, 2014 and 2013 (Thousands of Euros - EThs)
2014
2013(*)
ASSETS
NONCURRENT ASSETS
64,657
66,744
Intangible assets (Note 6)
199,303
206,917
Goodwill (Note 6)
141,257
134,643
730
725
21,417
25,532
6,455
6,093
433,819
440,654
22,692
25,090
308
373
Trade and other receivables (Notes 7 and 8)
183,270
202,921
Cash and cash equivalents (Notes 7 and 10)
72,029
44,895
278,299
273,279
712,118
713,933
Property, plant & equipment (Note 5)
Financial investments (Note 7)

Deferred tax assets (Note 18)
Other noncurrent assets (Note 7 and 8)
CURRENT ASSETS
Inventories (Note 9)
Financial receivables (Note 7)
TOTAL ASSETS
(*) Restated in application of IAS 19R (See note 2 of the Notes to the Consolidated Annual Financial Statements for the
years 2014)
Notes 1 to 37 form an integral part of these Consolidated Annual Financial Statements.
2014
2013(*)
43,497
41,824
108,411
141,870
8,699
8,445
174,368
142,226
(92)
(251)
EQUITY
Share capital (Note 11)
Share premium
Legal Reserve (Note 13)
Reserves in subsidiaries & other reserves (Note 14)
Treasury stock (Note 12)
Retained earnings (Note 15)
154,031
150,800
INTERIM DIVIDENDS PAID (Note 29)
(76,787)
(77,850)
FOREIGN EXCHANGES DIFFERENCES
(23)
(283)
16,478
15,601
428,582
422,382
NON-CONTROLLING INTERESTS (Notes 2 and 15)

TOTAL EQUITY
LIABILITIES
NONCURRENT LIABILITIES
Trade and other payables (Notes 7 and 16)
3,725
7,909
Borrowings (Notes 7 and 20)
4,900
10,050
5,603
4,797
28,525
33,618
42,753
56,374
209,983
201,336
8,011
6,881
Welfare commitments (Note 19)

Provisions for other liabilities and expenses (Note 21)
Deferred tax liabilities (Note 18)
CURRENT LIABILITIES
Trade and other payables (Notes 7 and 16)
Current tax liabilities (Note 17)
5,411
9,031
17,378
17,929
240,783
235,177
TOTAL LIABILITIES
283,536
291,551
TOTAL EQUITY AND LIABILITIES
712,118
713,933
Borrowings (Notes 7 and 20)

Provisions for other liabilities and expenses (Note 21)
years 2014)
49
Consolidated Income Statements

For the years ended November 30, 2014 and 2013
(Thousands of euros - EThs)
2014
2013(*)
738,954
759,231
4,046
3,831
Raw materials and consumables used (Note 24)
(195,544)
(197,413)
Employee benefit expense (Note 23)
(247,060)
(258,086)
Amortization, depreciation and impairment losses (Note 5.6)
(22,194)
(26,966)
Other net expense (Note 25)
(57,845)
(60,575)
OPERATING PROFIT
220,357
220,022
737
817
(933)
(2,089)
(70)
57
Sales (Note 22)

Other revenue
Revenue from financing activities (Note 26)

Costs of financing activities (Note 26)
Net foreign exchange differences (Note 26)
82
140
PROFIT BEFORE TAX
220,173
218,947
Income tax expense (Note 27)
(64,885)
(67,007)
PROFIT FROM CONTINUING OPERATIONS

AFTER TAX (Note 15)
155,288
151,940
154,031
150,800
1,257
1,140
0,36
0,38
Share in (loss)/profit of associates

OTHER GAINS AND LOSSES
ATTRIBUTABLE TO:
Shareholders of the Company (Note 15)
Non controlling interests (Note 15)
EARNINGS PER SHARE FOR THE PROFIT OF CONTINUING
OPERATIONS ATTRIBUTABLE TO THE SHAREHOLDERS
OF THE COMPANY IN THE YEAR (Euros per share) (Note 28)
- Basic
- Diluted
Consolidated Statement of comprehensive income

2014
2013(*)
155,288
151,940
260
(67)
Other comprehensive income for the year, net of taxes
1,247
5,144
Total comprehensive income for the year, net of taxes
156,795
157,017
155,538
155,877
1,257
1,140
Profit for the year (Note 15)

Other comprehensive income:
Items that can be transferred to profit:
Exchange rate differences
Attributable to:
- Shareholders of the Company
- Non controlling interests
years 2014)
Consolidated Statement of Changes in Equity

Attributable to shareholders
Share
Capital
Balance at December 01, 2012 (*)
38,524
Share
Legal
Premium Reserve
7,705
Treasury
Stock
(425)
Comprehensive profit
for the year (Note 15)
Non
controlling
Interests
Accumulated Reserves in
Foreign subsidiaries
Exchange & other
Differences reserves
(216)
101,805
(67)
740
Distribution of profit 2012 (Note 15)
47,740
Dividend relating to 2012 (Note 29)

Capital increase (Note 11)
3,300
174,039
174
Treasury stock transactions (Note 12)
Retained
earnings
103,735
24,073
275,201
155,944
1,140
157,017
(181,097)
(132,617)
132,617
132,617
(1,609)
175,730
26
200
(120,221)
Dividend 2013 (Note 29)
(32,169)
(23,764)
Business combinations (Note 33)
(7,629)
(31,393)
(1,983)
(1,983)
90,978
15,601
422,382
155,278
1,257
156,795
Other movements
Balance at November 30, 2013 (*)
41,824
141,870
8,445
(251)
Comprehensive profit
for the year (Note 15)
(283)
124,198
260
254
Distribution of profit 2013 (Note 15)
38,288
Dividend relating to 2013 (Note 29)

Capital increase (Note 11)
1,673
(154,031)
(115,489)
115,489
115,489
(1,673)
159
Treasury stock transactions (Note 12)
(50)
(109)
(114,426)
Dividend 2014 (Note 29)
(114,426)
(33,459)
Share premium distribution (Note 29)
(33,459)
(2,439)
Business combinations (Note 33)

Other movements
Balance at November 30, 2014
(120,221)
(32,169)
Share premium distribution (Note 29)
43,497
Total
Equity
108,411
8,699
(92)
(23)
158,324
93,288
596
(1,843)
(867)
(867)
16,478
428,582
Notes 1 to 37 form an integral part of these Consolidated Annual Financial Statements. (*) Restated in application of IAS 19R.
51
Consolidated Statements of Cash Flows

2014
2013(*)
154,031
150,800
Amortization/depreciation/provisions (Notes 5, 6 and 8)
23,606
31,262
Taxes (Note 27)
64,884
67,007
Other losses and gains (Note 26)
196
1,272
Gains/(losses) on sales of fixed assets
(83)
(140)
(66,232)
(62,001)
21,815
(6,464)
1,257
1,140
199,474
182,876
Investment in property, plant & equipment/intangible assets (Note 5.6)
(7,406)
(6,024)
Acquisition of subsidiaries (Notes 6 and 33)
(6,442)
(17,637)
65
226
265
12,781
(13,518)
(10,654)
(147,884)
(152,390)
(8,771)
(12,043)
NET PROFIT
Adjustments to profit:
Tax payment for the year (Note 27)

Net cash generated by operating activities
Profit attributable to non-controlling interests (Note 15)
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES (Note 30)
Acquisition of other financial assets

Business combinations in kind (Note 33)
CASH FLOWS USED IN INVESTING ACTIVITIES
Dividends paid (Note 29)
Treasury stock acquisition (Note 12)
Bank debt (Note 29)
(2,167)
CASH FLOWS USED IN FINANCING ACTIVITIES
(158,822)
(164,433)
VARIATION IN CASH AND CASH EQUIVALENTS
27,134
7,789
Cash and cash equivalents at the beginning of the period (Note 10)
44,895
37,106
Cash and cash equivalents at the end of the period (Note 10)
72,029
44,895
Notes 1 to 37 form an integral part of these Consolidated Annual Financial Statements. (*) Restated in application of IAS 19R.
Notes to the Consolidated Annual Financial Statements

for the years 2014 and 2013
NOTE 1. GENERAL INFORMATION

The main business activity of Zardoya Otis, S.A. (the Company) and its subsidiaries (together, the Group) is the manufacture
and installation of elevators, the provision of the related maintenance service and the export of equipment for installation
abroad. The Group has manufacturing plants in Madrid and San Sebastin and Modernization Centres in Munguia (Vizcaya)
and Vigo (Pontevedra).
ZARDOYA OTIS S.A. is a limited liability company incorporated and registered in Madrid. The address of its registered office
is Golfo de Salnica, 73, Madrid.
United Technologies Holding S.A., incorporated in France, holds a majority interest in the Group of 49.63% of the Companys
shares at November 30, 2014. The company forms part of the UTC Group, incorporated in the United States of America
(Note 34). Zardoya Otis, S.A. is listed on the Madrid, Barcelona, Bilbao and Valencia stock exchanges.
These consolidated annual financial statements were approved by the Board of Directors on February 24, 2015 and are
pending the approval of the Annual Shareholders Meeting. Nevertheless, Management considers that the above mentioned
accounts will be approved as presented.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below.
These policies have been consistently applied to the years presented.
2.1 Basis of presentation
The consolidated financial statements of the Group as of November 30, 2014 have been prepared in accordance with
International Financial Reporting Standards (IFRS) and Interpretations (IFRIC) adopted for application in the European Union
and in force at that date.
The Groups consolidated annual financial statements at November 30, 2014 include the figures for the preceding year to
allow a comparison to be made. Likewise, they have been drawn up under the going concern principle.
The preparation of financial statements under IFRS requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Groups accounting policies.
The accounting estimates, in consequence, can be different to the final result of the circumstances evaluated, Both
judgement and estimates are constantly reviewed and are based principally on historical experience and future events that
are deemed reasonable.
The Group has adopted in 2014 retrospectively the modified IAS 19. As a result, comparative information for the year ended
November 30, 2013 in the consolidated financial statements differs from the ones presented in the previous periods.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant
to the consolidated financial statements are:
a) Conctracts in progress
Contracts in progress are valued at the cost incurred plus the expected profit margin, based on the percentage of completion
of the contract, in proportion to the difference between the total estimated cost and the contract price agreed upon with
the customers. Said margin is reviewed in accordance with the actual progress of the work and the costs still to be incurred,
by means of periodic reestimations, so that the margin of profit or loss that will result at the end of the contracts will not
differ substantially from the margins applied while the contracts were in progress. (Note 2.13.b and 2.20.a).
53
b) Welfare commitments
The liability recognized in the Statement of FInancial Position in respect of defined benefit pension plans is the present value
of the defined benefit obligation at the end of the reporting period less the fair value of plan assets, together with
adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is calculated
annually by independent actuaries using the projected unit credit method. (Note 2.18).
c) Estimated impairment loss on goodwill and other intangible assets
The Group tests goodwill and units under maintenance for impairment annually, in accordance with the accounting policy
described in Note 2.6. The recoverable amounts of the cash-generating units are determined on the basis of calculating the
value in use. These calculations require the use of estimates.
d) Deferred taxes
Deferred tax is calculated on the basis of the temporary differences that arise between the tax bases of assets and liabilities
and their carrying amounts in the consolidated financial statements. Deferred tax is determined using tax rates that have
been or are about to be approved at balance sheet date and are expected to apply when the related deferred tax asset is
realized or deferred tax liability is settled. Deferred tax assets are recognized to the extent that it is likely that future taxable
income will be available against which to offset the temporary differences and are reviewed in accordance with any legal
changes or circumstances that may affect their recoverability (Note 2.17).
2.2 Consolidation principles
Subsidiaries are all companies in which the Group has the power to govern the financial and operating policies, which, in the
latter case, implies a shareholding of more than half the voting rights. When assessing whether the Group controls another
entity, the existence of any potential voting rights that are exercisable or convertible is considered. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group unless the information provided by the company
is not sufficiently reliable and is not material. They are de-consolidated from the date that control ceases.
Investments in subsidiaries are recognized at cost less accumulated impairment losses. The cost is adjusted to reflect
changes in the amount of the consideration resulting from variations in the contingent consideration.
The annual consolidated financial statements have been prepared applying the full integration method to the accounting
records of Zardoya Otis, S.A. and its subsidiary companies, by including all the balance sheet and profit and loss items arising
from the accounting records. Certain reclassifications have been made in order to improve the presentation of the
consolidated financial statements and the related non controlling interests.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The consideration
for the acquisition of a subsidiary is the fair value of the assets transferred, liabilities incurred and shares in the equity issued
by the Group at the acquisition date. The consideration transferred also includes the fair value of any asset or liability that
comes from the acquisition agreement. Identifiable assets acquired and liabilities and contingent liabilities accepted in a
business combination are measured initially at their fair values at the acquisition date. For each business combination, the
Group may elect to recognize any non-controlling interest in the acquiree at fair value or at the non-controlling interests
proportionate share in the net identifiable assets of the acquiree. Goodwill is measured as the excess of the aggregate of
the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value
of the acquirers previously-held equity interest in the acquiree over the net of the acquisition-date amounts of the
identifiable assets acquired and the liabilities assumed. If this amount were lower than the fair value of the net assets of the
acquiree, the difference is recognized as bargain purchase gain in the comprehensive income statement. The costs related
to acquisition are recognized as expenses in the period incurred.
Transactions between Group companies and balances and unrealized gains on transactions between Group entities are
eliminated. Likewise, unrealized losses are also eliminated.
a) Subsidiary companies
The list of subsidiaries and information thereon are as follows:
2014
2013
Carrying amount
Company and registered office
Activity
%
(+) Ascensores Eguren, S.A.

Installation &
100.00%
(Bilbao)
Service of Elevators
Ascensores Ingar, S.A.
Installation
100.00%
(Granada)
of Elevators
(+) Cruxent-Edelma, S.L.
Installation &
100.00%
(Barcelona)
(+) Ascensores Serra, S.A.
Installation &
75.00%
(Gerona)
(+) Mototraccin Elctrica Latierro, S.A.
Manufacturing
100.00%
(Vitoria)
Elevator Engines
(+) Puertas Automticas Portis, S.L.
Installation & Service
93.83%
(Madrid)
of Automatic Doors
(+) Otis Elevadores Lda.
Installation &
100.00%
(Portugal)
Masel Otis Elevadores Madeira Lda.
Installation &
60.00%
(Portugal)
(+) Ascensores Pertor, S.L.
Installation &
94.13%
(Valencia)
(+) Acresa Cardellach, S.L.
Installation &
94.57%
(Barcelona)
(+) Conservacin de Aparatos
Installation &
100.00%
Elevadores Express, S.L. (Madrid)
Admotion, S.L.
Research, development &
100.00%
(Zaragoza)
manufacture of electronic equipment
(+) Otis Maroc, S.A.
Installation &
100.00%
(Marruecos)
Ascensores Aspe, S.A.
Installation &
100.00%
(Baleares)
Montoy, S.L.
Installation &
100.00%
(Lrida)
(+) Montes Talln, S.A.
Installation &
52.00%
(Alicante)
(+) Grupo Ascensores Enor, S.A.
Installation &
100.00%
(Pontevedra)
(+) Ascensores Enor, S.A.
Installation & Service of
100.00%
(Pontevedra)
Elevators and Automatic Doors
(+) Electromecnica del Noroeste, S.A.
Installation &
100.00%
(Pontevedra)
(+) Enor Elevaao e Equipamentos
Installation &
100.00%
Industriales Lda (Portugal)
Electromecnica Hermen
Installation &
90.00%
Elevadores, S.L. (Vitoria)
Ascensores Hermen, S.L.
Installation &
100.00%
(Vitoria)
Carrying amount
(thousands
of euros)
(thousands
of euros)
Parent
Company
6,635
100.00%
6,635
Zardoya Otis, S.A.
3,404
100.00%
3,404
Zardoya Otis, S.A.
26,504
100.00%
26,504 Zardoya Otis, S.A.
605
75.00%
605
Zardoya Otis, S.A.
4,073
100.00%
4,073
Zardoya Otis, S.A.
16,825
90.12%
11,742
100.00%
2,104
60.00%
2,104 Otis Elevadores Lda.
17,393
94.13%
18,025
97.62%
1,771
100.00%
1,771
Zardoya Otis, S.A.
1,583
91.66%
1,330
Zardoya Otis, S.A.
21,949
100.00%
9,122
100.00%
9,122 Ascensores Eguren, S.A.
8,084
60.00%
7,143
10,823
52.00%
175,730
100.00% 175,730 Zardoya Otis, S.A.
4,950
100.00%
715
100.00%
935
100.00%
6,980
2,908
Zardoya Otis, S.A.
4,950
Grupo
Ascensores Enor, S.A.
715
Grupo
935
Grupo
Zardoya Otis, S.A.
-
Zardoya Otis, S.A.
(+) Companies audited by PwC.
In fiscal year 2013 there have been the following changes in the Group:
In december 2012, Puertas Automticas Portis, S.L. signed an agreement to acquire its own shares from a minority
shareholder for a 3.07% for amount to EThs 1,201. This transaction does not change the Zardoya Otis S.A. percentage of
ownership in the subsidiary.
Also in December, 2012, Zardoya Otis, S.A. acquired 49% of the company electric Mototraccin Elctrica Latierro, S.A. for
an amount of EThs 3.573; as of the transaction date the noncontrolling interest book value was EThs 2.889.
55
As mentioned in Note 33, in February 2013, Zardoya Otis, S.A. acquired 100% of the share capital of Grupo Ascensores
Enor, S.A. for a total of EThs 175,730 by contribution of 3,338,463 registered shares of Grupo Ascensores Enor, S.A.
representing the entirety of its share capital, in exchange of 16,913,367 new ordinary shares issued to that purpose. With
this acquisition the entities: Grupo Ascensores Enor, S.A.; Electromecnica del Noroeste, S.A.; Ascensores Enor, S.A. and
Enor Elevaao e Equipamentos Industriais, Lda. are 100% directly or indirectly owned by Zardoya Otis, S.A.
In July, 2013, Zardoya Otis, S.A. acquired the remaining 30% of Cruxent-Edelma, S.L., for an amount of EThs 13,328; as
of the transaction date the non-controlling interest book value was EThs 4,779.
Additionally, in July, 2013 Zardoya Otis, S.A. acquired the 8.33% of the non-controlling interest of the company
Admotion, S.L. valued in EThs 200 using the Treasury Stock (18,904) shares held in portfolio) for payment. In october,
2013 Zardoya Otis, S.A. acquired another 8.33% of the non-controlling interest of the company Admotion, S.L. for an
amount of EThs 230 paid in cash, as of the transaction date the non-controlling interest book value was EThs 40.
In November 2013, Portis, S.L. used its own shares held since December 2012 in payment of the EThs 1,179 outstanding
from the acquisition of Fercas. The rest of treasury stock, EThs 22, were cancelled against the company equity.
In fiscal year 2014 there have been the following changes in the Group:
In January, 2014 Zardoya Otis, S.A. acquired the remaining 8.33% of the non-controlling interest of the company
Admotion, S.L., thus completing the 100% ownership of such company. The payment was done using the treasury stock
(18,500 shares).
In May 2014, the subsidiary Acresa Cardellach, S.L. carried out a capital increase through a non-monetary contribution
of EThs 8,084 which was subscribed by the entirety of the shareholders of the subsidiary Montoy, S.L., which after the
capital increase is 100% owned by Acresa Cardellach, S.L. This transaction resulted in a change of participation by
Zardoya Otis, S.A. in the mentioned subsidiary Acresa Cardellach, S.L. holding directly the 94.57% of shares and indirectly
the same percentage on Montoy, S.L.
In June, 2014 Zardoya Otis, S.A. acquired 3.66% of the non-controlling interest of the company Puertas Automticas
Portis, S.L. for an amount of EThs 1,432, this transaction represents a change in the Zardoya Otis, S.A. participation that
increases to 93.83% ownership of such company.
In September, 2014 Zardoya Otis, S.A. has acquired 90% of the share capital of Electromecnica Hemen Elevadores, S.L.
and 100% of Ascensores Hemen, S.L., both companies dedicated to the maintenance and repair of elevators in the
provinces of lava, Guipzcoa, Burgos and Navarra. The total cost of the business combination has been determinated
provisionally in EThs 9,888.
Transactions with non-controlling interests are included in the financial statements in accordance with the Group policy
(Note 2.2b) therefore not impacting the consolidated profit for the year.
If these changes had taken place at the beginning of the period, the effect on the key figures of the consolidated income
statement and consolidated statement of financial position would not have been significant.
b) Transactions and non-controlling interests
The Group applies a policy of treating transactions with minority interests as transactions with equity owners of the
group. For purchases of minority interests, the difference between any consideration paid and the relevant share acquired
in the carrying amount of net assets of the subsidiary is recorded in the equity. Gains or losses on disposals to minority
interests are also recorded in equity. The disposal of minority interests and the difference between the consideration
received and the related proportion of minority interests are also recognized in equity.
c) Joint business
The Group recognizes the proportional part of the jointly-controlled assets and jointly-incurred liabilities in accordance
with its percentage holding, together with the assets attached to the joint operations that are under its control and the
liabilities incurred as a consequence of the joint business.
Likewise, the applicable portion of the revenue generated and expenses incurred by the joint business is recognized in
the income statement. Additionally, expenses incurred in relation to the holding in the joint business are recognized.
Unrealized gains or losses that arise on reciprocal transactions are eliminated in proportion to the holding, as are the
amounts of reciprocal assets, liabilities, revenues, expenses and cash flows.
2.3 Segment reporting
A business segment is a group of assets and operations engaged in providing products or services that are subject to risks
and returns that differ from those of other business segments. A geographical segment is engaged in providing products
or services within a particular economic environment that are subject to risks and returns that differ from those of
segments operating in other economic environments. Each of the defined segments is allocated the costs that it has
incurred directly. Each of the defined segments has its own functional structure. Common or shared costs are allocated
based on time devoted or usage of the resources. Information on operating segments is reported in accordance with the
management information produced on a monthly basis, which is reviewed by Management regularly and by the Board
of Directors at each of its meetings.
2.4 Foreign currency translation
(a)
Functional and reporting currency
The Consolidated Finantial Statements are presented in thousands of Euros, which is the Groups functional and
reporting currency.
(b)
Transactions and balances
Foreign currency transactions are translated into Euros using the exchange rates prevailing at the dates of the
transactions. Foreign currency losses and gains resulting from settlement of these transactions and conversion of
monetary assets and liabilities denominated in foreign currencies at year-end rates are recognized in profit and loss.
Exchange rate gains and losses relating to loans and cash and cash equivalents are shown in the income statement under
revenue and expenses from financing activities.
(c)
Group companies
Gains and losses and the financial situation of Group companies (none of which has the currency of a hyperinflationary
economy) with a functional currency other than the currency in which the financial statements are presented are
translated into the latter as follows:
I) The assets and liabilities of each Statement of Financial Position presented are translated at the closing exchange rate
at the end of the reporting period.
II) The income and expenses of each Income Statement are translated at the average exchange rates (unless this average
is not a fair reflection of the accumulated effect of the rates existing on the transaction dates, in which case the income
and expenses are converted at the transaction dates).
III) All exchange rate differences are recognized as a separate component in other comprehensive income.
Upon consolidation, the exchange differences that arise on the translation of a net investment in foreign companies is
taken to the shareholders equity. When sold, these exchange differences are recognized on the Income Statement as part
of the loss or gain on the sale.
Adjustments to goodwill and fair value that arise on the acquisition of a foreign company are treated as assets and
liabilities of the foreign company and are translated at the year-end exchange rate.
2.5 Property, plant and equipment
The land and buildings comprise the Companys production centers. All property, plant and equipment is stated at cost
less accumulated depreciation and impairment, with the exception of land which is not depreciated.
Historical cost includes expenses that are directly attributable to the acquisition of the items.
Subsequent costs are included in the assets carrying amount or recognized as a separate asset only when it is probable
that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured
reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the
Income Statement during the financial period in which they are incurred.
57
Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost
or revalued amounts to their residual values over their estimated useful lives, as follows:
Buildings ..........................................................................................
33 years
Machinery ...................................................................................... 4, 8, 10 and 13 years

Vehicles ............................................................................................
5 and 6 years
Furniture, fittings & equipment ..............................................
4, 10 and 13 years
The assets residual values and useful lives are reviewed and adjusted if appropriate, at the end of each reporting period.
An assets carrying amount is written down immediately to its recoverable amount if the carrying amount is greater than
its estimated recoverable value.
Gains and losses on disposals are determined by comparing proceeds with carrying amount and included in profit and
loss. When revalued assets are sold, the amounts included in the revaluation reserves are transferred to reserves for
retained earnings.
The value of property, plant and equipment as of November 30, 2014 includes the effect of the revaluation carried out
under Spanish legislation in the year 1996 following Royal Decree 7/1996 dated June 7, which gave rise to a net value
increase of EThs 4,056 in the Companys property, plant and equipment. The total amount of the restatement was shown
in the accounts, as provided for in Royal Decree-Law 7/1996, as an increase in the value of the restated assets, with its
balancing item in the revaluation reserve account, net of the applicable taxes, for an amount of EThs 3,934. At November
30, 2014, the aforementioned restatement had an impact of EThs 326 on the net carrying amount of property, plant and
equipment. Consequently, the effect of this restatement on the provision for the year 2014 is EThs 19.
This restatement was carried out only in the parent company, Zardoya Otis SA. For the purposes of the first
implementation of IFRS, it was considered as acquisition cost, with no further revaluations under IFRS.
2.6 Intangible Assets
(a) Maintenance contracts and other related intangible assets
The amounts relate principally to the cost of taking over elevator maintenance contract portfolios acquired either
directly as a portfolio of contracts or as a consequence of a business combination. Amortization is carried out using the
straight-line method, considering the estimated useful lives (5 to 20 years depending on the characteristics of the
portfolio).
Impairment tests are conducted regularly whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable.
Trademarks and other related assets resulting from portfolios acquisition are shown at historical cost. They have a
defined useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straightline method.
(b) Goodwill
Goodwill represents the amount by which the acquisition cost exceeds the fair value of the Groups holding in the
identifiable net assets of the subsidiary acquired at the acquisition date. Goodwill related to acquisitions of subsidiaries
is included in the intangible assets. Goodwill recognized separately is submitted to annual impairment tests and is valued
at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains or losses on the sale
of a company include the carrying amount of the goodwill associated to the company sold.
Goodwill is asigned to the cash-generating units for the purposes of testing for impairment. It is assigned to the cashgenerating units that are expected to benefit from the business combination upon which the goodwill arises.
(c) Research and development expenses
Research expenditures are recognized as expenses when incurred and are not recognized as an asset, since they do not
meet requirements to be capitalized under IFRS.
2.7 Impairment losses on non-financial assets
Assets that have an undefined useful life are not subject to amortization and are tested regularly for impairment. Assets
that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets
carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an assets fair value less costs to sell and its value in use. For the purposes of
assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash flows (cashgenerating units). The possible reversal of impairment losses on non-financial assets other than goodwill is reviewed at
the end of each reporting period.
2.8 Financial Assets
2.8.1) Classification
Financial Assets include shareholdings in companies other than subsidiaries and associates, financial assets held for
investment purposes and investments held until maturity. Financial assets are recorded at their fair value, including
additional direct costs. Permanent impairment is provided for as a direct reduction in the asset account.
The Group classifies its investments in the following categories: financial assets at fair value through profit or loss, loans
and receivables, held-to-maturity investments and available-for-sale financial assets. The classification depends on the
purpose for which the investments were acquired. Management determines the classification of its investments at initial
recognition and re-evaluates this designation at each reporting date. Guarantee and other deposits are measured at the
amounts deposited.
a) Financial assets at fair value through profit and loss
Financial assets held at fair value through profit and loss are financial assets held for trading. A financial asset is classified
in this category if acquired principally for the purpose of being sold in the short term. Derivatives are also classified as
held for trading unless designated as hedges. Assets in this category are classified as current assets if expected to be
liquidated within twelve months. Otherwise, they are classified as noncurrent. At November 30, 2014 and 2013, the
Group did not hold any financial assets at fair value through profit and loss.
b) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted on an
active market. They arise when the Group provides money, goods or services directly to a debtor with no intention of
trading the receivable. They are included in current assets, except for maturities longer than 12 months after the end of
the financial period. These are classified as noncurrent assets. Loans and receivables are included in trade and other
receivables on the Statement of Financial Position and recorded at amortized cost using the effective interest method.
c) Financial assets available for sale
Available-for-sale financial assets are non-derivative financial assets placed in this category or not classified in any other
category. They are included as noncurrent assets unless management intends to dispose of the investment in the 12
months following the end of the reporting period.
2.8.2) Recognition and measurement
Acquisition and disposal of investments are recognized on the date they are negotiated, on the date on which the Group
makes the commitment to acquire or sell the asset. Investments are initially recognized at their fair value plus
transaction costs. Financial assets are derecognized when the rights to receive cash flows from them have expired or been
transferred and the Group has substantially transferred all the risks and rewards of ownership thereof. When securities
classified as available for sale are sold or incur impairment losses, the accumulated adjustments to the fair value are
recognized in profit or loss as losses or gains on the securities.
2.9 Offsetting financial instruments
Financial assets and financial liabilities are offset against each other and presented at the net amount on the Statement
of FInancial Position when there is a legal right to offset the amounts recognized and the Group intends to liquidate the
net amount or to realise the asset and settle the liability simultaeously.
59
2.10 Impairment losses on financial assets

Assets at amortized cost
The Group assesses financial assets or groups of financial assets for indicators of impairment at the end of each reporting
period. A financial asset or group of financial assets is impaired and suffers an impairment loss when there is objective
evidence of impairment, as a result of one or more events that have ocurred after the initial recognition of the financial
asset and the event causing the impairment affects the estimated future cash flows of the financial asset or group of
financial assets, provided that this effect can be reliably estimated.
Other criteria the Group uses to determine whether there is objective evidence of impairment include: significant
financial difficulties of the issuer or counterparty; breach of contract, such as a default or delinquency in interest of
principal payments; it becoming probable that the borrower will enter bankruptcy or financial re-organization; the
disappearance of an active market for that financial asset because of financial difficulties; or other observable
information that indicates that there is a measurable decrease in the estimated future cash flows, even if the decrease
cannot yet be identified with individual financial assets belonging to the Group, including if, in a future period, the
amount of the impairment loss decreases and the decrease cannot be objectively attributed to an event that has
occurred after the impairment was recognized, the reversal of the previously-recognized impairment loss is recognized
in consolidated profit and loss.
2.11 Derivative financial instruments and hedging activity
The Group occasionally maintains commitments in foreign currency of insignificant value originated by the acquisition
of equipment to be installed in special projects. These cases are covered by forward contracts the impact of which is
included in the Income Statement as net financial cost, in accordance with the accrual method.
Derivatives are initially recognized at their fair value on the date on which the derivative contract is signed. After initial
recognition, they are remeasured at fair value. In the years 2014 and 2013, the Group did not enter into any contracts
for derivative hedging instruments and no forward contracts existed at the 2014 and 2013 year ends.
2.12 Inventories
Inventories are valued at the lower of market value or average cost of acquisition or production. Finished goods and work
in progress include costs directly attributable to the products in question as appropriate to their period of production.
The net realizable value is the estimated selling price in the ordinary course of business less the applicable variable selling
costs.
When the net realizable value of the inventories is lower than their costs, the relevant adjustments to their value will be
made and recognized in the income statement. If the circumstances that caused the value adjustment cease to exist, the
adjustment is reversed and recognized as revenue in the Income Statement.
2.13 Trade and other receivables
(a) Trade receivables
Trade receivables are recognized initially at fair value, and subsequently at their amortized cost in accordance with the
effective interest rate method, less provision for impairment. A provision for impairment of trade receivables is
established when there is objective evidence that the Group will not be able to collect all amounts due in accordance
with the original terms of the receivables. The amount of the provision is recognized in profit and loss.
(b) Contracts in progress
Contracts in progress are valued at the cost incurred plus the expected profit margin, based on the percentage of
completion of the contract, in proportion to the difference between the total estimated cost and the contract price.
The Group presents as an asset the gross amount due from customers for contract work for all contracts in progress for
which cost incurred plus recognized profit (less recognized losses) exceed progress billing and as a liability the gross
amount due to customers for contract work for all contracts in progress for wich progress billings exceed costs incurred
plus recognized profits (less recognized losses). Progress billings not yet paid by customers and amounts withheld are
included within trade and other receivables.
2.14 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits held at call with banks, other short-term, highly liquid
investments with original maturities of three months or less and cash placements maturing at 30 days in accordance
with the contract for the provision of financial services signed with United Technologies Treasury Center and United
Technologies Corporation (the parent company of Otis Elevator Company) for the provision of services and optimization
of the placement of cash surpluses, forward contracts and other services.
Bank overdrafts are included as borrowings in current liabilities in the Statement of Financial Position.
2.15 Share capital and treasury stock
- Share capital and share premium
Ordinary shares are classified as equity. Incremental costs directly attributable to issuing new shares or options are
shown in equity as a deduction, net of taxes, from the revenue obtained.
The share premium reserve account corresponds to reserves freely available for distribution.
As a general rule and unless theres a more reliable valuation, the fair value of the equity instruments or financial
liabilities issued as consideration in a business combination shall be their quoted price, if such instruments are admitted
to quote in an active market.
- Treasury stock
When shares of the group parent are acquired, the consideration paid, including any directly attributable incremental
cost, is deducted from equity until the shares are written off, reissued or sold. When the shares are sold or reissued
subsequently, any amount received, net of any directly attributable incremental cost of the transaction, is recognized in
equity.
2.16 Trade payables
Trade payables are payment obligations for goods or services that have been acquired from vendors in the ordinary
course of operations. Payables are classifed as current liabilities if payment is due at one year or less (or matures in the
normal operating cycle, if longer). Other wise, they are shown as noncurrent liabilities.
Trade payables are initially recognized at fair value and are subsequently valued at amortized cost using the effective
interest rate method.
2.17 Current and deferred taxes
The consolidated Income Statement for the year includes the corporate income tax expense, which is calculated
considering the corporate income tax accrued during the year and the effect of deferral of the differences arising
between the taxable income and the book profit before tax that will reverse in future years, together with the tax credits
and allowances applied by Group companies. Deferred tax is calculated on the basis of the temporary differences that
arise between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements.
Deferred tax is determined using tax rates that have been or are about to be approved at balance sheet date and are
expected to apply when the related deferred tax asset is realized or deferred tax liability is settled.
Deferred tax assets are recognized to the extent that it is likely that future tax profits will be available to offset the
temporary difference.
Deferred tax assets and deferred tax liabilities are offset when, and only when, there is a legally-recognized right to offset
the current tax assets against the current tax liabilities and when the deferred tax assets and the deferred tax liabilities
derive from corporate income tax levied by the same tax authority and they refer either to the same company or
taxpayer or to different companies or taxpayers that intend to settle their current tax assets and liabilities for the net
amount.
61
2.18 Welfare commitments

In accordance with Royal Decree 1588/1999, whereby the Regulations on Pension Commitments between companies
and employees were enacted and which provides that pension commitments acquired by companies must be
externalized and arranged through a group life insurance policy or pension plan or both, and the amendment introduced
by Law 14/2000 concerning the transitional period for the formalization or adaptation of said policies and/or plans, on
November 7, 2002 and November 14, 2002, respectively, the Company signed, with two insurance companies, the
framework agreements regulating the technical, economic and legal conditions of the group insurance policies in order
to arrange the pension commitments acquired by the company with its current and retired employees. In December
2011, Zardoya Otis, S.A. had been the last payment for the financing of the agreement signed.
The liability recognized on the Balance Sheet in respect of the defined-benefit pension plans is the present value of the
defined benefit obligation at the balance sheet date less the fair value of plan assets, together with adjustments for
unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by
independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is
calculated by discounting the estimated future cash outflows using the interest rate on high-quality corporate bonds
denominated in the same currency as that in which the benefits will be paid and maturing at similar terms as the
obligation.
As mentioned in the notes 2.1 and 19, the Group has adopted in 2014 retrospectively the modified IAS 19. For
comparison, in the consolidated statement of changes in equity, balance of the beginning of the prior year (started on
December 1, 2012) includes the unrecognized actuarial gains as of november 30, 2012 for a total amount of EThs 12,884.
Likewise the net equity as of november 30, 2013 increases by EThs 11,823 corresponding to the initial recognition of the
actuarial gains as mentioned of EThs 12,884, and the effect of the recognition on the actuarial gains as mentioned of
EThs 12,884, and the effect of the recognition of the actuarial gains and retained generated in the fiscal year 2013 for
EThs 1,061 and a reduction in profit of the year for an amount of EThs 6,205.
There is also a defined contribution plan the annual premium of which is included as employee expenses. Once the
contributions have been paid, the Group holds no additional payment obligations. Contributions are recognized as
employee expenses annually.
2.19 Provisions
In general, the Group recognizes a provision when it is legally or contractually liable or when past practices have created
an implicit obligation.
Provisions are measured at the present value of the payments that are expected to be required to settle the obligation,
applying a rate before tax that reflects the current markets estimates of the time value of money and the specific risks
of the obligation. The increase in the provision as time passes is recognized as interest expense.
2.20 Revenue recognition
Revenue comprises the fair value for the sale of goods and services, net of value-added tax, rebates and discounts and
after sales within the Group have been eliminated. Revenue is recognized as follows:
(a) Revenue from installations and assembly contracts
Revenue from elevator installation and assembly is recognized based on the estimated percentage of completion.
Periodic corrections are made to the estimates so that the margin of profit or loss that will result at the end of the
contracts will not differ substantially from the margins applied while the contracts were in progress.
(b) Revenue from maintenance contracts
Revenue from maintenance contracts is apportioned on a straight-line basis as it is earned. Invoicing may be on a
monthly, quarterly, six monthly or annual basis depending on the terms laid down in the agreements signed with the
customers. The necessary entries are made to recognize advance invoicing.
(c) Interest revenue

Interest revenue is recognized using the effective interest rate method.
2.21 Dividend distribution
Dividend distribution to the Companys shareholders is recognized as a liability on the Groups financial statements in
the period in which the dividends are approved by the Companys shareholders.
2.22 Borrowings
Borrowings are initially recognized at fair value net of any transaction costs incurred. Subsequently, they are measured
at their amortized cost and any difference between the funds obtained (net of the costs necessary to obtain them) and
the repayment value is recognized in the Income Statement over the life of the debt, applying the effective interest rate
method.
Commissions paid on the granting of credit lines are recognized as transaction costs of the loan, to the extend that it is
probable that any or all of the lines will be used. In these cases, the commissions are deferred until the line is used. To
the extent that there is no evidence that the line is likely to be used, the commission is capitalized as an advance
payment for liquidity services and is amortized over the period for which the credit line is available.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement for at least
the twelve following months after the year end of the reported period.
2.23 Leases
Leases where the lessor retains a significant portion of the risks and rewards of ownership are classified as operating
leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the Income
Statement on a straight-line basis over the period of the lease.
2.24 New rules and IFRIC interpretations
The IASB has approved and published certain accounting rules, amendments to existing ones and IFRIC interpretations
that came into force in the present year:
a) IAS 19: Employee Benefits was amended in June 2011. The effect on the Group will be as follows: the
corridor aproach will be eliminated and all actuarial losses and gains will be recognized in other
comprehensive income when they arise; all costs of past services will be recognized inmediately; and interest,
calculated by applying the discount rate to the net defined benefit liabilities (assets). The Group will adopt
IAS 19 no later than the first accounting period commencing after January 1, 2014. At November 30, 2014
the unrecognized actuarial gains recorded amount to EThs 11,823, being this figure the total impact in the
financial statements starting on December 1, 2014.
b) IFRS 10 Consolidated Financial Statements is drawn up using existing principles identifying the control
concept as the factor that determines whether an entity should be included in the consolidated financial
statements of its parent. The Group will adopt IFRS 10 no later than the first accounting period commencing
after January 1, 2014.
c) IFRS 11 Joint Business. The Group will adopt IFRS 11 no later than the first accounting period
commencing after January 1, 2014.
d) IFRS 12 Disclosure of Interests in other Entities includes the reporting requirements for all types of
interests in other entities, including joint arrangments and associates. The Group will adopt IFRS 12 no later
than the first accounting period commencing after January 1, 2014.
e) IFRS 13 Fair Value Measurement is intended to improve consistency and reduce complexity by providing
a clear definition of fair value and a sole source for measuring it, together with reporting requirements for
the use thereof in IFRS. The requirements do not extend the use of fair value accounting, provide guidance
on how it should be applied where its use is already required or permitted by other standards within IFRSs
or U.S. GAAP. The Group will adopt IFRS 13 no later than the firs accounting period commencing after January
1, 2014.
63
f) IFRS 7 (Amendment), Disclosures - Transfers of Financial Instruments. This requires additional disclosures
on the risk exposures arising from financial instruments transferred to third parties. Among others, the
amendment would affect financial asset sale transactions, factoring agreements and securities loan
transaction. The amendments to IFRS 7 are mandatory for all annual periods commencing after January 1,
2014.
Likewise, IASB has approved and published certain accounting rules, amendments to existing ones and IFRIC
interpretations that will came into force in after the closing of the fiscal year not adopted earlier:
a) IAS 32 Financial Instruments: Presentation, issued to clarify certain requirements for offsetting financial
assets and liabilities in the statement of financial position. The Group will adopt IAS 32 no later than the first
accounting period commencing after January 1, 2014.
b) IFRS 9 Financial Instruments addresses the classification, measurement and recognition of financial
assets and liabilities. IFRS 9 requires financial assets to be classified into two measurement categories: those
measured at fair value and those measured at amortized cost. The determination is made upon initial
recognition. The main change in fair value that is the consequence of the entitys own credit risk is recognized
in other comprehensive income, rather than in profit and loss, unless this would create an accounting
mismatch. The Group will adopt IFRS 9 no later than the first accounting period commencing after January
1, 2015.
NOTE 3. FINANCIAL RISK MANAGEMENT
Financial risk factors
The Groups activities are exposed to a variety of financial risks: market risk (including foreign exchange risk, fair value
interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk. The Groups global risk
management program is focused on the uncertainty of the financial markets and trying to minimize the potential
negative effects on the Groups financial profitability.
Risk management is controlled by Group Management in accordance with policies approved by the parent companys
Board of Directors, Management assesses and hedges financial risks in close collaboration with the Groups operating
units, in order to:
- Ensure that the most important risks are identified, assessed and managed.
- Ensure an appropriate operating segregation of the risk management functions.
- Ensure that the risk exposure level accepted by the Group in its operations is in line with its risk profile.
(a) Market risk
(I) Foreign exchange risk
The Group operates internationally and is occasionally exposed to foreign exchange risk arising from transactions
in US dollars. Foreign exchange risk arises from future commercial transactions and recognized assets and
liabilities. However, these transactions are not significant and the effect in a change in the interest rate would not
have a material effect on the Groups financial statements.
To hedge the foreign exchange risk on future commercial transactions for the import of materials, Group
companies use forward contracts negotiated with UTC Treasury Center.
The Group holds an investment in foreign currency, Otis Maroc, S.A., which net assets are exposed to the risk of
Foreign exchange differences at the 2014 and 2013 year ends. However their value is not significant and the effect
in a change in the exchange rate would not have a material effect on the Groups financial statements.
Receivables from related Otis Group companies originating principally from trading transactions originated in
euros (EThs 26,944 in 2014 and EThs 31,639 in 2013, Note 34). Since these are commercial collection rights in
euros, the Company is not exposed to foreign exchange risk in relation to these accounts.
(II) Price risk

The Group has only limited exposure to commodity price risk.
Additionally, Group companies do not hold investments in companies outside the Group and, therefore, the
Group is not exposed to securities price risk.
(b) Credit risk
The Group has no significant concentrations of risk with customers and there are no significant old credit balances (Note
8). The Group has policies in place to ensure that installation sales are made to customers with appropriate credit
histories and, in addition, regular debt-monitoring procedures are conducted by the departments involved in debt
collection.
To minimize credit risk, the Group has risk management policies in place to limit the amount of risk with any one
financial institution. The credit risk arises from cash and cash equivalents, financial instruments, deposits with financial
institutions, debt available for sale and accounts receivable. The banks and financial institutions with which the Group
works are of recognized prestige and hold high credit ratings.
The amounts of trade receivables are shown in the statement of financial position net of the provision for impairment.
At November 30, 2014, said provision was EThs 101,512 (EThs 100,101 in 2013) (Note 8). The Company estimates the
provision in accordance with the age of the debt and experience in earlier years, in line with the previous segregation of
the customer portfolio and the current economic environment.
The analysis of financial assets aged over six months but not deemed to be impaired at November 30, 2014 and 2013 is
as follows:
2014
2013
Between 6 months & 1 year ........................................................................................
13,175
15,323
Between 1 & 2 years ......................................................................................................
10,668
10,093
More than 2 years ............................................................................................................
EThs
23,843
25,416
Amounts receivable for exports relate to balances with related companies (Otis Group).
As stated in Note 10, at November 30, 2014 and 2013, the Group held current deposits with financial institutions of EThs
25.451 and EThs 21,009, respectively. As stated above these deposits are placed with prestigious financial institutions in
Spain and Portugal.
(c) Liquidity risk
Conservative liquidity risk management, implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of committed credit facilities. Group treasury aims to maintain
flexibility in funding by keeping committed credit lines available.
At November 30, 2014, cash and cash equivalents represented EThs 72,029 (EThs 44,895 in 2013), including amounts
held as cash, in banks and as current deposits with financial institutions. As stated in Note 20, during the year 2011, the
Company signed a framework agreement for the financing of company acquisitions with Banca March, S.A. for a period
of three years, up to a maximum amount of a hundred million euros. The change in the Statement of Cash Flows in
relation to operating, investing and financing activities is shown below:
2014
2013
Cash at the beginning of the year ..............................................................................
44,895
37,106
Cash flows from operating activities ........................................................................
199,474
182,876
Cash flows from investing activities ..........................................................................
(13,518)
(10,654)
Cash flows from financing activities..........................................................................
(158,822)
(164,433)
Cash at the year end ......................................................................................................
72,029
44,895
65
(d) Cash flow and fair value interest rate risk

As the Group does not hold important remunerated assets, income and cash flows from operating activities are
substantially independent of changes in market interest rates.
The Group does not use financial derivatives to hedge rate risks derived from its activity. In accordance with group
treasury policies, the Group does not acquire or hold financial derivatives for trading.
The Groups interest rate risks arises on noncurrent borrowings at a variable interest rate, the variable interest rate
applied to the loans from financial institutions being subject to the fluctuations of the Euribor.
As stated in Note 20, at the 2014 year end, the noncurrent amount for this items was EThs 4,900 (EThs 10,050 in 2013).
At November 30, 2014 and 2013, the Company did not hold any borrowings at a fixed interest rate and the sensitivity
of the result to the variation of the interest rates on the borrowings from financial institutions was not significant in
relation to the interest expense for the year, which was EThs 1,202 (Eths 1,473 in 2013).
(e) Capital risk management
The Groups objectives in relation to capital management are to safeguard its capacity to continue as a going concern,
to have the capacity to fund its internal or external growth through acquisitions, to obtain adequate yields for the
shareholders and to maintain an optimal capital structure that includes equity, the generation of its own cash from the
business in each year and, as far as necessary, borrowings at the lowest cost possible.
The Group considers the leverage as a capital management indicator. It is calculated by dividing the net debt by the total
capital. The net debt is calculated as total borrowings plus other financial liabilities less cash and cash equivalents less
current financial assets.
2014
2013
Borrowings (current and noncurrent) ........................................................................
10,311
19,202
Other current & noncurrent financial liabilities ....................................................
15,781
11,092
Cash and cash equivalents ............................................................................................
(72,029)
(44,895)
Net financial debt ............................................................................................................
(45,937)
(14,601)
Equity ..................................................................................................................................
428,582
422,382
Leverage (*) ........................................................................................................................
-0.12
-0.03
(*) Net financial debt / (Net financial debt + equity).
At November 30, 2014 this net debt represents -0.2147 to EBITDA (2013: -0.057) (EBITDA: operating profit +
depreciation + amortization).
NOTE 4. SEGMENT REPORTING
Zardoya Otis has determined achieving Service Excellence as its main goal. From this standpoint, the objective is to
satisfy vertical transport users throughout the full cycle of the product, starting with the design and manufacture of
elevators, integrating the technological advances that have made the Group the market leader, applied not only to new,
but also to existing buildings, and including their maintenance and replacement. In consequence, installation (and
replacement) and maintenance of elevators are not considered separate segments but complementary products and
services of the same nature, with an integrated production cycle, addressed to the same type of customers and with a
single distribution network, that represent a unique business segment for the Group, managed as such and subject to
similar risks and opportunities. Therefore, geographical differentiation has been identified as the primary segment,
considering the markets of Spain and Portugal and also Morocco / North Africa, as they have independent supervision as
stated in IFRS 8.
Additionally, the non-elevator business, mainly automatic doors, is shown, given its distinctive characteristics: a much
less mature market with lower margins and higher risks but with significant growth prospects. Therefore, it is an activity
clearly differentiated from traditional Group business and, in Managements option, information is relevant for the
shareholders.
As started in Note 2.3. the distinction between segments relates to the structure of the management information that
is produced on a monthly basis, regularly reviewed and used as a basis for decision making by Management and the Board
of Directors.
Sales
Operating
profit/(loss)
Assets
Total
Depreciation
Amortization
Charge
Liabilities
Non current
investments
in assets
2014
Zardoya Otis Group - Spain
725,021
203,068
621,950
21,688
18,524
228,908
Otis Elevadores Group - Portugal
59,097
21,584
59,880
450
537
31,796
Otis Maroc - Morocco
14,459
976
30,288
56
73
22,832
Eliminations - intragroup transactions
(59,623)
(5,271)
Consolidated
738,954
220,357
712,118
22,194
19,134
283,536
EThs
Sales
Operating
profit/(loss)
Assets
Total
Depreciation
Amortization
Charge
Liabilities
Non current
investments
in assets
2013
Zardoya Otis Group - Spain
739,932
205,331
625,814
26,200
191,941
239,694
Otis Elevadores Group - Portugal
63,277
24,203
63,966
707
112
31,339
Otis Maroc - Morocco
15,143
1,162
24,153
59
51
20,518
Eliminations - intragroup transactions
(59,121)
(4,469)
Consolidated
759,231
220,022
713,933
26,966
192,104
291,551
EThs
Operating
Sales
profit/(loss)
Fixed assets
%
acquired
2014
Zardoya Otis, S.A. (aggregate of 116 branches) ............................................
562,306
173,696
30.88
6,019
Spanish Group Companies - elevators (13 companies) ..............................
113,372
25,039
22.23
12,234
Otis Elevadores Group - Portugal ......................................................................
59,097
21,584
36.52
537
Otis Maroc - Morocco ............................................................................................
14,459
976
6.75
73
Total Elevators
749,234
221,295
29.56
18,863
Spanish Group Companies - non elevators (3 companies) ........................
49,343
4,423
8.96
272
Total Group
798,577
225,628
28.28
19,134
Eliminations - intragroup transactions..............................................................
(59,623)
29.80
19,134
EThs
Consolidated
738,954
(5,271)
220,357
Operating
Sales
profit/(loss)
Fixed assets
%
acquired
29.27
4,753
2013
Zardoya Otis, S.A. (aggregate of 95 branches) ..............................................
576,115
168,644
Spanish Group Companies - elevators (13 companies) ..............................
116,590
28,112
24.11
186,597
Otis Elevadores Group - Portugal ......................................................................
63,277
24,203
38.25
112
Otis Maroc - Morocco ............................................................................................
15,143
1,162
7.67
51
Total Elevators
771,125
222,121
28.80
191,513
Spanish Group Companies - non elevators (3 companies) ........................
47,227
2,370
5.02
591
Total Group
818,352
224,491
27.43
192,104
(59,121)
(4,469)
759,231
220,022
28.98
192,104
Eliminations - intragroup transactions..............................................................

EThs
Consolidated
67
NOTE 5. PROPERTY, PLANT AND EQUIPMENT

Details of the different categories of property, plant and equipment and movements on these accounts are shown below:
Land &
Buildings
Machinery
Furniture, fittings
& equipment
41,056
(10,060)
30,996
38,963
(28,697)
10,266
68,539
(57,126)
11,413
148,558
(95,883)
52,675
15,806
(1,041)
14,765
179
2,549
(491)
(2,967)
443
(287)
1,614
631
(377)
(2,594)
317
(409)
17,599
3,180
(868)
(6,602)
760
14,069
58,917
(13,156)
45,761
41,859
(31,880)
9,979
73,038
(62,034)
11,004
173,814
(107,070)
66,744
8
(1,160)
(1,152)
2,929
(1,254)
(3,149)
1,254
(220)
87
1,500
(719)
(2,302)
719
(715)
87
4,437
(1,973)
(6,611)
1,973
(2,087)
58,925
(14,316)
44,609
43,534
(33,775)
9,759
73,906
(63,617)
10,289
176,365
(111,708)
64,657
Total
As of November 30, 2012

Cost....................................................................................................
Accumulated depreciation ........................................................
Impairment loss ............................................................................
Net carrying amount ..................................................................EThs
2013
Business combinations ................................................................
Increases ..........................................................................................
Decreases ........................................................................................
Depreciation charge ....................................................................
Eliminations from depreciation ................................................
Impairment losses recognized in the year ............................
Impairment losses reversed ......................................................
Other movements ........................................................................
Al 30 de Noviembre de 2013
Cost....................................................................................................
Impairment loss ............................................................................
2014
Increases ..........................................................................................
Decreases ........................................................................................
Depreciation charge ....................................................................
Eliminations from depreciation ................................................
Other movements ........................................................................
Cost....................................................................................................
Impairment loss ............................................................................
The property, plant and equipment figure includes assets in progress for a total value of EThs 264 in 2014 and EThs 428
in 2013.
The principal property, plant and equipment comprises buildings and installations related to the Legans plant, work on
which was completed in the year 2008. The value of the buildings and installations recognized as property, plant and
equipment is EThs 23,345. In 2013 it also include the manufacturing facilities and offices of the Grupo Enor: Ascensores
Enor, S.A. and Electromecnica del Noroeste, S.A. in the technological park of Valladares (Vigo), opened in 2007 and
included at the fair value in the business combination for an amount of EThs 15,786.
At November 30, 2014 and 2013, the following items of property, plant and equipment were fully depreciated:
2014
2013
Land and buildings ..........................................................................................................
4,749
4,655
Vehicles and machinery..................................................................................................
29,890
29,920
Furniture, fittings and equipment ..............................................................................
39,088
37,755
EThs
73,727
72,330
Of the total property, plant and equipment net of depreciation, the value of which is EThs 64,657, the amount of EThs
373 is in Portugal and the amount of EThs 177 in Morocco (EThs 186 and 164 respectively in 2013). There is no other
property, plan and equipment outside spanish territory.
It is the Groups policy to take out all the insurance policies deemed necessary to cover any possible risks which could
affect, among other things, property, plant and equipment. At November 30, 2014 and 2013, none of the Groups
financial liabilities was secured by property, plant and equipment and, therefore, all the property, plant and equipment
were free of any charges.
NOTE 6. INTANGIBLE ASSETS
Details of the main categories of intangible assets and the movement on these accounts are shown:
Maintenance
Contracts
Goodwill
Other
Total
Cost....................................................................................................
220,361
56,663
3,090
280,114
Accumulated amortization ........................................................
(86,499)
(2,910)
(89,409)
Impairment loss ............................................................................

133,862
56,663
180
190,705
2013
Increases ..........................................................................................
443
2,518
2,961
78,432
83,873
6,011
168,316
Decreases ........................................................................................
(395)
(395)
Amortization charge ....................................................................
(11,897)
(2,574)
(14,471)
Eliminations from amortization ..............................................
337
337
(5,893)
(5,893)
-
Other movements ........................................................................
66,920
77,980
5,955
150,855
Cost....................................................................................................
298,841
140,536
9,093
448,470
(98,059)
(2,958)
(101,017)
At November 30, 2013
Impairment loss ............................................................................

(5,893)
200,782
134,643
6,135
341,560
2014
Increases ..........................................................................................
317
2,679
2,996
5,004
6,614
11,618
Decreases ........................................................................................
(196)
(196)
Amortization charge ....................................................................
(12,835)
(2,749)
(15,584)
Eliminations from amortization ..............................................
166
166
Other movements ........................................................................
(7,544)
6,614
(70)
(1,000)
Cost....................................................................................................
303,966
147,150
11,772
462,888
(110,728)
(5,707)
(116,435)
At November 30, 2014
Impairment loss ............................................................................

(5,893)
(5,893)
193,238
141,257
6,065
340,560
The goodwill and intangible assets with indefinite useful lives have been assigned to the Groups cash-generating units
(CGUs) as follows:
2014
2013
Otis Maroc, S.A. ................................................................................................................
17,780
17,780
Zardoya Otis, S.A. ............................................................................................................
25,794
19,180
Conservacin de aparatos elevadores Express, S.L.................................................
8,083
8,083
Puertas Automticas Portis, S.L. ..................................................................................
3,299
3,299
Montes Talln, S.A. ..........................................................................................................
2,428
2,428
Grupo Ascensores Enor ..................................................................................................
83,873
83,873
EThs
141,257
134,643
69
In 2014, increases due to business combinations, both in maintenance contracts and goodwill, relate to the acquisitions
made during the year (Note 33): Grupo Ascensores Enor, S.A.
For each business combination, the Group requires an external company of recognized prestige to verify the fair value of
the net assets acquired. The recoverable amount is determined by using cash-flow projections in financial budgets
approved by Management for a maximum 15-years period, based on past performance and market development
expectations. The growth rates applied maximum 2.9% and growth rate used for projections subsequent to the period
considered is 2%. The discount rate used is around 9.00% (2013: 9.68%).
To determine the value of the service contracts at the business combination date, the free discounted cash flow method
(DCF) is used, applied to the portfolio that exists at the business combination date and adjusted for each year by the
customer cancellation and turnover rate in accordance with the information and statitics held by Group Management.
To calculate the discount rate, the Group uses a long term Treasury bond rate, growth expectations, the cash-generating
unit (CGU) effective tax rate and the Groups cost of debt. The perpetuity growth rate used is in line with the one used
by similar industries in the countries in which the Group operates.
Period in
years budgeted
Subsequent
Discount rate
growth rate
(acquisition date)
Otis Maroc, S.A. ................................................................................................................
15
2.0%
8.2%
Conservacin de aparatos elevadores Express, S.L.................................................
5 to 15
2.0%
8.3%
Puertas Automticas Portis, S.L.. ................................................................................
5 to 15
2.0%
9%
Zardoya Otis, S.A. ............................................................................................................
5 to 15
2.0%
From 8% to 9%
Montes Talln, S.A. ..........................................................................................................
2.0%
9.7%
Grupo Ascensores Enor ..................................................................................................
15
2.0%
10.13%
The discount rate used is after tax and is independent of the specific capital structure of Zardoya Otis, S.A. and its
subsidiaries, which does not have significant financial debt, assuming the discount rate structure of the international
group and the sector.
It is a common Group practice, when there are operating reasons that justify it, to take advantage of business
combinations synergies through the legal integration by merger or liquidation of the entity acquired into the CGU to
which it belongs. In this regard, since Group business constitutes a single integrated production process, we consider a
cash-generating unit as the smallest identifiable group of assets that generates cash inflows that are largely independent
of the cash inflows from other assets or groups of assets. The goodwill and service portfolios are regularly tested for
impairment reviewing the business expectations drawn up at the time of acquisition using the key assumptions: period
considered, discount rate and perpetuity growth rate. Generally, except for Otis Morocco, the amount of goodwill
assigned to the different cash-generating units is not significant compared to the value of the CGU itself.
Apart from the discount rate, the most sensitive aspects included the projections used, which are based on the forecasts
of the international Group, sector forecasts and historical experience, are service revenue, growth in the contracts on the
portfolio from the expected synergies of the business combinations and adequate maintenance of the Groups expense
and cost structure.
In 2012 goodwill recognized in Montes Talln from business combinations of Montes Talln, S.A. and the companies
integrated in the year in such CGU (Ascensores Molero, S.L. and Reparacin y Mantenimiento de Ascensores, S.L.), was
valued at EThs 8,321. In 2013, the value in use of the assets of the CGU obtained from the test for impairment based on
the review of business expectations drawn up at the time of acquisition corresponding to service revenue, growth in the
contracts on the portfolio from the expected synergies of the business combinations and CGU expense and cost
structure, is lower than the net carrying amounts recognized and therefore, the impairment has been recognized in the
present financial statements for an amount of EThs 5,893.
As a result of the above process, in 2014 and 2013, except for the fall in value recorded for Montes Talln in 2013, the
values in use of the CGUs calculated in accordance with the above model were, in all cases, higher than the carrying
amounts shown in these Consolidated Annual Financial Statements. Therefore, no impairment other than that
mentioned above has been recognized. Likewise, it is estimated that any possible reasonable variations that might be
undergone by the key assumptions on which the determination of the recoverable amounts of the different CGUs is
based would not change the conclusions drawn as to the measurement of the assets.
Considering that, individually, the value of the maintenance contracts from the acquisition of Grupo Ascensores Enor,
S.A. has the heaviest weight in the total of said assets with a defined useful life, a sensitivity analysis considering the
discount rate and the average growth rate is set forth below:
Growth rate for the projected period
Discount rate
0%
1%
9.63%
9.88%
10.13%
10.38%
10.63%
79,482
78,003
76,596
75,199
73,870
80,572
79,045
77,592
76,153
74,783
2%
81,752
80,173
78,672
77,184
75,770
3%
83,033
81,396
79,842
78,302
76,839
In 2014, the trade and other payables heading included an obligation of EThs 13,695 (2013 ETh 13,970) related to the
share purchase agreement signed in 2011 with the sellers of Montes Talln. The obligation was recognized in 2013 after
completion of a one-year period since the assignation of the price and review of the companys equity situation. Initial
recognition of this obligation was against consolidation and other reserves presented in the consolidated statement of
changes in equity in 2013, since the risks and rewards associated to ownership of 48% of the shares of Monte Talln
continued to be held by minority shareholders and the amount was not considered significant in relation to the total
liabilities and equity at the end of 2013. In this respect, in 2014, the change in the liabilities was recognized in the
consolidated income statement as financial income.
Regarding acquisition of the remaining 48%, under the agreement signed with the sellers, the purchase of all or part of
the shares thereof by Zardoya Otis, S.A. may be requested at any time up to December 21, 2016. To determine the price
of the shares, the same criteria as those used for the initial purchase will be applied, basically service contracts and equity
value.
As stated in Note 33, in 2014, 100% of the company Ascensores Hemen Elevadores , S.L. was acquired for EThs 2,908
and 90% of Sociedad Electromecnica Hemen Elevadores, S.A. for EThs 6,980. The valuation of the company at the
business combination date was EThs 7,756, recognizing an obligation of EThs 776 under the trade and other payables
heading in relation to the purchase agreement for said shares, which, regarding the acquisition of the remaining 10%,
states that the sellers may, at any time during a five-year period, request the purchase of said shares by Zardoya Otis,
S.A. The obligation was initially recognized against consolidation and other reserves presented in the consolidated
statement of changes in equity in 2014.
As stated in the accounting policies of the Consolidated Notes to the Annual Financial Statements for the years 2014
and 2013, in relation to non-controlling transactions and interests, the Group applies the policy of considering
transactions with non-controlling interests as transactions with holders of instruments in the Groups capital. For
acquisitions of non-controlling interests, the difference between the price paid and the corresponding proportion of the
carrying amount of the subsidiarys net assets is deducted from the equity. For this reason, the obligation was recognized
against consolidation and other reserves.
71
The principal assets, at their carrying amounts in their respective balance sheet, contributed to the consolidation by each
one of the CGUs to which goodwill has been assigned are as follows:
2014
Conservacin de
. Zardoya Otis,
S.A.
aparatos
Otis
Puertas
Montes
elevadores
Maroc,
Automticas
Talln,
Grupo Ascensores
Express, S.L.
S.A.
Portis, S.L.
S.A.
Enor
Property, plan & equipment ..........
45,347
54
177
109
84
Other intangible assets....................
67,791
17,816
20,453
5,575
16,692
18
Deferred tax assets............................
11,733
334
59
96
269
Other noncurrent ..............................
3,628
16
77
917
Inventories............................................
43,831
478
252
381
212
1,472
Trade and other receivables............
147,233
5,581
12,861
4,921
1,946
11,796
Other current assets ........................
236
14
28
Cash and cash equivalents..............
30,205
323
437
607
7,479
2013
Conservacin de
. Zardoya Otis,
S.A.
aparatos
Otis
Puertas
Montes
elevadores
Maroc,
Automticas
Talln,
Grupo Ascensores
Express, S.L.
S.A.
Portis, S.L.
S.A.
Enor
Property, plan & equipment ..........
46,713
61
164
115
115
Other intangible assets....................
70,687
18,172
21,110
5,967
17,193
40
Deferred tax assets............................
14,610
505
39
77
230
Other noncurrent ..............................
3,580
23
80
800
Inventories............................................
39,190
50
551
429
295
1,381
Trade and other receivables............
173,851
5,678
13,643
5,760
1,927
13,211
Other current assets ........................
2,619
14
40
14
Cash and cash equivalents..............
11,090
559
623
605
487
2,959
NOTE 7. FINANCIAL ASSETS AND LIABILITIES BY CATEGORY

Loans &
receivables
& other
Assets held
at fair value
through profit Hedging
& loss
derivatives
Available
for sale
Total
November 30, 2014

Noncurrent assets in statement of financial position
Loans and receivables (Note 8)................................
Other..................................................................................
6.,455
730
6,455
730
Total ..................................................................................EThs
7,185
7,185
176,893
308
72,029
176,893
308
72,029
Total ..................................................................................EThs 249,230
249,230
Current assets in statement of financial position

Trade and other receivables (Note 8) ....................
Other ..........................................................................
Cash and cash equivalents (Note 10)......................
Loans &
receivables
& other
Assets held
at fair value
through profit
& loss
Hedging
derivatives
Available
for sale
Total
November 30, 2013

Noncurrent assets in statement of financial position
Loans and receivables (Note 8)................................
Other..................................................................................
6,093
725
6,093
725
Total ..................................................................................EThs
6,818
6,818
194,815
373
44,895
194,815
373
44,895
Total ..................................................................................EThs 240,083
240,083
November 30, 2013

Current assets in statement of financial position
Trade and other receivables (Note 8) ....................
Other ..........................................................................
Cash and cash equivalents (Note 10)......................
Liabilities held
Other financial
at fair value through
Hedging
liabilities at
profit and loss
derivatives
amortized cost
Total
November 30, 2014

Noncurrent liabilities in statement of financial position
Borrowings from financial institutions (Note 20) ..............
4,900
4,900
Trade and other payables ..........................................................
Other debts through acquisitions (Note 16) ......................
3,725
3,725
Total ..................................................................................................EThs
8,625
8,625
5,411
5,411
Trade and other payables (Note 16) ......................................
171,856
171,856
12,834
12,834
Total ..................................................................................................EThs
190,101
190,101
November 30, 2014

Current liabilities in statement of financial position
Liabilities held
Other financial
at fair value through
Hedging
liabilities at
profit and loss
derivatives
amortized cost
Total
November 30, 2013

Noncurrent liabilities in statement of financial position
10,050
10,050
-
7,909
7,909
Total ..................................................................................................EThs
17,959
17,959
9,031
9,031
170,300
170,300
5,693
5,693
Total ..................................................................................................EThs
185,024
185,024
November 30, 2013

Current liabilities in statement of financial position
73
NOTE 8. TRADE AND OTHER RECEIVABLES

2014
2013
Trade receivables ..............................................................................................................
224,603
243,122
Less: Provision for impairment of receivables ........................................................
(101,512)
(100,101)
Trade receivables - net....................................................................................................
123,091
143,021
Amount due from customers for contract works ..................................................
18,696
9,185
Other accounts receivable ............................................................................................
13,554
17,975
Prepayments ......................................................................................................................
985
1,102
Receivables from related parties (Note 34) ............................................................
26,944
31,639
Total ..............................................................................................................................EThs
183,270
202,921
The total amount of the costs incurred at the end of the reporting period was EThs 53,714 (2013: EThs 45,553), this
amount includes recognized profits (less recognized losses) on all contracts in progress for EThs 4,341 (2013: EThs 3,952).
Amounts due from customers for contract works are shown net, between the cost incurred at the end of the reporting
period and the advance payments received from the customers, for an amount of EThs 35,018 (EThs 36,638 in 2013). At
November 30, 2014, the trade receivables balance showed an amount of EThs 2,694 (2013: EThs 3,691) related to
amounts withheld by customers in accordance with the conditions of their contracts.
Movement on the provision for the impairment of receivables was as follows:
2014
2013
Beginning of the period..................................................................................................
100,101
89,606
Provision made..................................................................................................................
3,719
8,345
Business combinations ..................................................................................................
6,199
Applications........................................................................................................................
(2,308)
(4,049)
EThs
101,512
100,101
The provisions and applications are including on the income statement under the heading of Other expenses, net. The
net provision provided in the financial year 2014 has been a 0.19% of Group sales (2013: 0.57%).
Trade receivables includes balances at more than six months for the following amounts:
2014
2013
Between six months and one year ............................................................................
16,258
18,815
Between one and two years ........................................................................................
41,199
41,072
More than two years ......................................................................................................
15,124
12,808
EThs
72,581
72,695
The detail of matured receivables age and relative impairment is as follows:

2014
Due but not
Thousands of euros
Less than six months
Between six months and one year
Gross
Impaired
Net
Not Due
111,480
16,258
impaired
(12,232)
99,248
74,102
25,146
(3,083)
13,175
13,175
10,668
Between one year and two years
41,199
(30,531)
10,668
More than two years
15,124
(15,124)
Under litigation
40,542
(40,542)
224,603
(101,512)
123,091
74,102
48,989
Total
2013
Due but not
Thousands of euros
Less than six months
Gross
Impaired
Net
Not Due
impaired
131,888
(14,283)
117,605
71,863
45,742
Between six months and one year
18,815
(3,492)
15,323
15,323
Between one year and two years
41,072
(30,979)
10,093
10,093
More than two years
12,808
(12,808)
Under litigation
Total
38,539
(38,539)
243,122
(100,101)
143,021
71,863
71,158
Additionally, other noncurrent assets includes long-term promissory notes received from customers with maturity dates
of more than one year for a total amount of EThs 4,421 (EThs 4,297 in 2013). The breakdown by years until maturity is
as follows:
2014
2013
Two years ............................................................................................................................
3,498
3,438
Three years ........................................................................................................................
725
659
More than three years ....................................................................................................
198
200
EThs
4,421
4,297
2014
2013
Raw materials and consumables for production....................................................
19,300
22,972
Work in progress ..............................................................................................................
3,392
2,118
EThs
22,692
25,090
2014
2013
Cash and banks ................................................................................................................
46,577
23,886
Current deposits with financial institutions ............................................................
25,452
21,009
EThs
72,029
44,895
NOTE 9. INVENTORIES
NOTE 10. CASH AND CASH EQUIVALENTS
The effective interest rate on current deposits with financial institutions varied from 0.10% and 0.65% in 2014 (2013:
from 0.10% to 0.30%) and the maturity of these deposits is less than 3 months. Unlike precedent years, at November
30, 2014 and 2013, the Group did not hold any deposits with Group companies.
For the Statement of Cash Flows, cash and borrowings include:
2014
2013
Cash and cash equivalents ....................................................................................EThs
72,029
44,895
Borrowings: utilization of bank credit (Note 20)............................................EThs
10,122
18,815
The Group holds committed credit lines for an amount sufficient to maintain flexibility in funding, as stated in Note 3
Financial Risk Management. Notwithstanding, these lines are only used occasionally. At the 2014 year end, of the total
current borrowings balance, the amount of EThs 189 (2013: EThs 266) relates to other non-bank credits granted to the
Group and to the interest calculated on acquisitions.
75
NOTE 11. SHARE CAPITAL

No. Shares
Ordinary
Shares
Total
At November 30, 2012 ......................................................................................
385,241,499
385,241,499
385,241,499
Capital increase January ....................................................................................
16,913,367
16,913,367
16,913,367
Capital increase July ............................................................................................
16,086,194
16,086,194
16,086,194
At November 30, 2013 ......................................................................................
418,241,060
418,241,060
418,241,060
Capintal increase July..........................................................................................
16,729,642
16,729,642
16,729,642
At November 30, 2014 ......................................................................................
434,970,702
434,970,702
434,970,702
The shares issues carried out in 2014 and 2013 were bonus issues charged to voluntary reserves.
Shares
Owner
2014
% shareholding
2014
2013
203,281,011
49.63
48.60
49,212,512
47,319,722
11.31
11.31
Other non-controlling interests ................................ 169,884,357
167,611,151
39.05
40.08
United Techonologies Holdings, S.A......................... 215,862,730

Euro-Syns, S.A. ................................................................
Treasury shares ..............................................................
2013
11,103
29,176
0.01
0.01
434,970,702
418,241,060
100.00
100.00
No other individual shareholder holds an interest of more than 10% in the capital of the parent company of the Group.
All shares of the Parent Group are of the same class and have the same voting rights.
2013:
In 2013, the Extraordinary General Shareholders Meeting of the Company to which took place in January 2014, it was
approved to increase the Companys share capital, which is currently 38,524,149.90 euros, by the sum of 1,691,336.70
euros, by issuing 16,913,367 new ordinary shares in the Company with a face value of 0.10 euros each and a share
premium of 9.10 per share (giving a total of 153,911,639.70 euros as a share premium) to be exchanged by the
3,338,463 Enor shares, representatives of 100% of its capital.
The new shares were listed effective in March 14, 2014 and to that date a total of 2,198,738 new shares were pledged
in favor of the company in compliance with the acquisition agreement.
In this sense, in April 2014 the pledge on 3% of the shares corresponding to the shareholders of Grupo Ascensores Enor,
S.A. was cancelled once it was verified the compliance with the guarantee clause related to the Annually-computed
Effective Value of the Service Portfolio at September 30, 2013, which, as stated in the initial contribution agreement, was
not to be lower than 99% of the Annually-computed Confirmed Value of the Service Portfolio at Septembe 30, 2012.
Additionally, during 2013 and 2014 there was a syndication agreement concluded between the two major shareholders
of the company; United Technologies Holdings, S.A.S. (UTH) and Euro Syns, S.A., which has its origin in the operation
of acquisition of Group Ascensores Enor, S.A. described above and published by means of relevant fact date January 30,
2014. Referred syndication Pact was held in the interest of the acquisition of Enor operation, so that UTH is holder at
any time more than 50% of the voting rights on society.
Also, at the Annual Shareholders Meeting held on May 27, 2013, a resolution was adopted to increase the share capital
by 1,608,619.40 euros against the Voluntary Reserve, in the proportion of one new share for every twenty five old shares,
issuing 16,086,194 new shares. Once the capital increase had been completed, the capital amounted to 41,824,106.00
euros and consisted of 418,241,060 shares with a par value of 0.10 euros each. The new shares were entitled to the
dividends paid after the date of the capital increase and therefore participated in the second quarterly dividend, second
interim dividend paid against 2014 profits on October 10, 2014. The increase was carried out from July 15, 2014 until
July 30, 2014, inclusive. The new shares were listed on the Madrid, Barcelona, Valencia and Bilbao stock exchanges
effective September 3, 2014.
2014:
Also, at the Annual Shareholders Meeting held on May 26, 2014, a resolution was adopted to increase the share capital
by 1,672,964.20 euros against the Voluntary Reserve, in the proportion of one new share for every twenty five old shares,
issuing 16,729,642 new shares. Once the capital increase had been completed, the capital amounted to 43,497,070.20
euros and consisted of 434,970,702 shares with a par value of 0.10 euros each. The new shares were entitled to the
dividends paid after the date of the capital increase and therefore participated in the second quarterly dividend, second
interim dividend paid against 2014 profits on October 10, 2014. The increase was carried out from July 15, 2014 until
July 30, 2014, inclusive. The new shares were listed on the Madrid, Barcelona, Valencia and Bilbao stock exchanges
effective September 12, 2014.
At November 30, 2014, interim dividends were declared for the year ended on said date for an amount of EThs 76,787
(EThs 77,850 in 2013). These interim dividends were paid (Note 29) for shares 1 to 418,241,060 (1st and 2nd interim
dividend). Additionally there was a partial distribution of share premium distributed to shares 1 to 418,241,060, for an
amount of EThs 33,459.
Incremental costs directly attributable to the issuance of new shares or options are recognized in the equity as a
deduction, net of tax, from the income obtained.
NOTE 12. TREASURY STOCK
The ordinary General Shareholders Meeting of Zardoya Otis, S.A. held on May 26, 2014 authorized the Board of Directors
to acquire, directly or indirectly, shares of Zardoya Otis, S.A. itself up to the maximum amount permitted by law.
As of November 30, 2014 Zardoya Otis, S.A. maintain 11,103 treasury shares (29,176 at 2013 year-end). Due to the noncontrolling interest transaction, Zardoya Otis exchanged 18,904 treasury shares. The above mentioned figure includes
427 shares received in the bonus issue (Note 11 and 2,2).
NOTE 13. LEGAL RESERVE
The legal reserve has been recognized under the provisions the Capital Company Act, article 274, which requires 10% of
annual profit be set aside until 20% of the share capital is reached.
Unless the legal reserve exceeds said limit, it can be used only to offset losses when no other reserves are available.
Details of the legal reserve by company at November 30, 2014 and 2013 are as follows:
Company
Zardoya Otis, S.A. ............................................................................................................
Ascensores Eguren, S.A. ..................................................................................................
Ascensores Ingar, S.A. ......................................................................................................
Ascensores Serra, S.A.......................................................................................................
Cruxent-Edelma, S.L.........................................................................................................
Mototraccin Elctrica Latierro, S.A. ..........................................................................
Grupo Otis Elevadores (Portugal)................................................................................
Ascensores Pertor, S.L. ....................................................................................................
Conservacin de Aparatos Elevadores Express, S.L. ..............................................
Acresa Cardellach, S.L. ....................................................................................................
Admotion, S.L.....................................................................................................................
Otis Maroc, S.A. ................................................................................................................
Ascensores Aspe, S.A. ......................................................................................................
Montoy, S.L. ........................................................................................................................
Montes Talln, S.A. ..........................................................................................................
Grupo Ascensores Enor, S.A. ........................................................................................
Ascensores Enor, S.A. ......................................................................................................
Electromecnica del Noroeste, S.A. ..........................................................................
Enor Elevaao e Equipamentos Industriales Lda. ..................................................
Electromecnica Hemen Elevadores, S.L. ................................................................
Ascensores Hemen, S.L. ................................................................................................
2014
2013
8,699
13
48
24
63
420
68
10
354
1,990
37
10
41
20
19
2,704
601
204
50
-
8,445
13
48
24
63
420
68
10
354
1,990
37
10
41
20
19
2,704
601
204
50
-
77
NOTE 14. RESERVES IN SUBSIDIARY COMPANIES AND OTHER RESERVES
Subsidiary
companies
Other reserves
Total
101,805
As of November 30, 2012......................................................................................EThs
85,579
16,226
Profit 2012..........................................................................................................................
36,531
45,699
82,230
Dividends paid in the year ............................................................................................
(34,552)
(34,552)
Capital increase ................................................................................................................
(1,609)
(1,609)
Other movements............................................................................................................
(9,792)
(13,884)
(23,676)
124,198
77,766
46,432
Profit 2013..........................................................................................................................
31,527
30,861
62,388
Dividends paid in the year ............................................................................................
(24,199)
(24,199)
Capital increase ................................................................................................................
(1,673)
(1,673)
Other movements............................................................................................................
(1,614)
(776)
(2,390)
83,480
74,844
158,324
Details by company of reserves in subsidiary companies and other reserves as of November 30, 2014 and 2013 are as
follows:
2014
2013
Company
Zardoya Otis, S.A. ............................................................................................................
84,803
56,389
Ascensores Eguren, S.A. ..................................................................................................
(7,571)
(7,009)
Ascensores Ingar, S.A. ......................................................................................................
(5,166)
(4,795)
Ascensores Serra, S.A.......................................................................................................
801
444
Cruxent-Edelma, S.L.........................................................................................................
(12,422)
(11,954)
Mototraccin Elctrica Latierro, S.A. ..........................................................................
1,195
877
Grupo Otis Elevadores (Portugal)................................................................................
49,341
49,242
6,640
5,394
Ascensores Pertor, S.L. ....................................................................................................
7,286
6,691
Conservacin de Aparatos Elevadores Express, S.L. ..............................................
17,305
14,277
Acresa Cardellach, S.L. ....................................................................................................
24,992
22,914
Admotion, S.L.....................................................................................................................
(217)
(538)
Ascensores Aspe, S.A. (dependiente de Eguren, S.A.) ............................................
(2,186)
(2,186)
Otis Maroc, S.A. ................................................................................................................
4,074
4,712
Montoy, S.L. ........................................................................................................................
44
(430)
Montes Talln, S.A. ..........................................................................................................
(2,176)
(1,117)
Grupo Ascensores Enor, S.A...........................................................................................
2,786
IFRS adjustements ...........................................................................................................
(9,959)
(9,959)
158,324
124,198
EThs
In compliance with the provisions of the Capital Company Act, art 273:4, the Group has recognized a reserve of EThs
4,588 (EThs 4,667 in 2013), equivalent to 5% of the goodwill included in the assets in its Statement of Financial Position.
As stated in the Capital Company Act, this reserve is unavailable.
NOTE 15. PROFIT FOR THE YEAR

Companies contributions to the Zardoya Otis Group accounts, including the portion allocated to non-controlling
interests, are as follows:
2014
2013
Consolidated
Attributable to non
profit
controlling interests
Consolidated
profit
Attributable to non
controlling interests
Company
Zardoya Otis, S.A. ..........................................................
122,156
118,907
Ascensores Eguren, S.A. ................................................
702
(984)
Ascensores Ingar, S.A.....................................................
(373)
(371)
Ascensores Serra, S.A. ..................................................
1,462
487
1,425
475
Cruxent-Edelma, S.L.......................................................
1,534
1,716
592
Mototraccin Elctrica Latierro, S.A. ........................
1,229
1,610
Grupo Otis Elevadores (Portugal) ............................
13,579
265
16,118
243
Puertas Automticas Portis, S.L. ................................
1,692
72
(438)
(48)
Ascensores Pertor, S.L. ..................................................
2,625
164
2,882
180
Conservacin de Aparatos Elevadores Express, S.L.
2,587
3,028
Acresa Cardellach, S.L. ..................................................
2,848
82
3,397
82
Admotion, S.L. ................................................................
119
372
103
Otis Maroc, S.A. ..............................................................
693
609
Ascensores Aspe, S.A.....................................................
501
423
Montoy, S.L.......................................................................
(39)
15
11
151
Montes Talln, S.A. ........................................................
(623)
121
(692)
(638)
Grupo Ascensores Enor, S.A. ......................................
3,339
2,787
Electromecnica y Ascensores Hemen, S.L ............
51
EThs 154,031
1,257
150,800
1,140
The proposed distribution of 2014 profit and other reserves in the parent company that will be submitted for approval
at the Annual Shareholders Meeting, together with the 2013 profit distribution approved, is as follows:
2014
2013(*)
Available for distribution

Profit for the year ............................................................................................................
143,495
154,287
EThs
143,495
154,287
Distribution
To legal reserve ................................................................................................................
348
254
To reserve for goodwill ..................................................................................................
1,806
1,806
Other reserves ..................................................................................................................
27,582
36,738
Dividends ............................................................................................................................
113,759
115,489
EThs
143,495
154,287
(*) Distribution of 2013 profit approved at the Annual Shareholders Meeting on May 26, 2014.
79
NOTE 16. TRADE AND OTHER PAYABLES

2014
2013
Trade payables ..................................................................................................................
27,836
29,798
Payables to related parties (Note 34)........................................................................
9,291
7,536
Other payables ..................................................................................................................
16,841
16,409
Goods received but not invoiced ................................................................................
7,865
6,513
Notes payable....................................................................................................................
922
1,362
Amounts due to customers on work in progress (Note 8) ................................
29,804
25,104
Maintenance billing in advance ..................................................................................
29,891
31,424
Acquisition commitments (Note 7) ..........................................................................
12,834
5,693
Other payables to public authorities (Note 17) ....................................................
25,294
25,343
Outstanding employee remuneration ......................................................................
30,722
32,545
Other ....................................................................................................................................
18,683
19,609
EThs
209,983
201,336
The amounts payable to related companies are partly in foreign currency and there are no other significant amounts
payable in foreign currency. Since the amounts are current and are not significant, no hedges have been deemed necessary.
The heading Related companies includes balances denominated in foreign currencies other than Euros, the equivalent
value of which in euros amounts to EThs 646 (2013: EThs 377)
At November 30, 2014 and 2013, there were commitments for costs incurred in work for which, although it had been
completed, charges from third parties had not yet been received. This item is shown under the heading Other payables.
The heading Other includes mainy the liability mentioned in note 6 for a value of EThs 14,471 (2013: EThs 13,879).
In relation to commitments from acquisitions, the table below shows the maturities of the outstanding amounts for this
item presented as other financial liabilities:
Current
Year 2014
2016
2017/18
Noncurrent
Acquisitions 2013 & earlier ........................................
9,710
927
927
Acquisitions 2014 ..........................................................
3,124
1,399
1,399
2,798
12,834
2,326
1,399
3,725
Current
2015
2016/17
EThs
Year 2013
Noncurrent
Acquisitions 2012 % earlier........................................
4,766
974
974
Acquisitions 2013 ..........................................................
927
6,935
6,935
5,693
7,909
7,909
EThs
Summary of the 2014 debt:

Current
Noncurrent
Acquisitions 2014
Acquisitions CGU Zardoya Otis, S.A...........................................................................
3,124
2,798
3,124
2,798
Acquisitions 2013 & earlier

Acquisitions non-controlling interests
Latierro ..........................................................................................................................
1,645
Edelma ..........................................................................................................................
5,002
2,126
927
Acquisitions CGU Puertas Automticas Portis, S.L. ..............................................
40
Acquisitions CGU Conservacin de Aparatos y Elevadores Express, S.L. ........
844
Acquisitions CGU Montes Talln, S.A.........................................................................
53
9,710
927
12,834
3,725
Summary of the 2013 debt:

Current
Noncurrent
Acquisitions 2013
Acquisitions non-controlling interests
Latierro ..........................................................................................................................
910
1,470
Edelma ..........................................................................................................................
5,102
17
363
927
6,935
2,498
974
202
Acquisitions CGU Conservacin de Aparatos y Elevadores Express, S.L. ........
2,013
Acquisitions CGU Montes Talln, S.A.........................................................................
53
4,766
974
5,693
7,909
Acquisitions 2012 and earlier

Company acquisitions agreements in force at November 30, 2014 and 2013 bear interest charges only on the portions
relating to contingent liabilities secured by withholding part of the price payable. The amount is not significant.
Forecast payments are classified as current in accordance with the payment conditions fixed in each contract. Those
classified as noncurrent are measured at amortized cost and the differences are recognized in profit and loss over the
term of the debt, applying the effective interest rate method.
a) Information in delays in payments made to suppliers. Third Addition Provision Duty of Information of Law 15/2010 of
July 5.
The year ended November 30, 2011 was the first year in which Law 15/2010 of July 5 was applicable. In this respect, in
accordance with said Law, the Company informs that, during 2014, total payments made to suppliers were Eths 316,683
(2013: Eths 294,719), complying with the aforementioned legislation.
Thousands of euros
2014
2013
within the maximum legal period ............................
315,737
99.7
291,421
98.88
Remainder.........................................................................
946
0,.0
3,297
1.12
Total payments for year...............................................
316,683
100
294,718
100
Weighted average excess payment period.............
946
3,297
Payments made and outstanding
Delays that exceeded the legal term

at the end of the year ..................................................
81
NOTE 17. PUBLIC TREASURY

2014
2013
753
612
458
4,553
756
607
1,552
5,191
6,376
8,106
68,882
(62,001)
Public Treasury, VAT due ................................................................................................

Public Treasury, output VAT ..........................................................................................
Social Security ..................................................................................................................
67,362
(59,351)
3,163
728
9,207
12,195
EThs
33,304
32,224
2014
2013
To be recovered within 12 months ............................................................................
20,516
901
22,563
2,969
EThs
21,417
25,532
2014
2013
To be recovered within 12 months ............................................................................
26,909
1,616
32,021
1,597
EThs
28,525
33,618
2014
2013
Beginning of period..........................................................................................................
P&L impact ........................................................................................................................
P&L impact: change of statutory rate ......................................................................
25,532
(208)
(3,907)
25,510
313
(291)
-
End of period..............................................................................................................EThs
21,417
25,532
2014
2013

P&L impact ........................................................................................................................
P&L impact: change of statutory rate ......................................................................
33,618
1,500
(1,436)
(5,157)
9,372
25,318
(1,072)
-
End of period..............................................................................................................EThs
28,525
33,618
Debit balances
Social Security ..................................................................................................................
Withholding tax ................................................................................................................
Public Treasury, VAT payable ........................................................................................
Public Treasury, input VAT ............................................................................................
EThs
Credit balances
Provision for corporate income tax ............................................................................
Payments on account of corporate income tax ....................................................
Public Treasury, withholdings operated ....................................................................
3,140
504
9,356
12,343
NOTE 18. DEFERRED TAXES

Deferred tax assets:
To be recovered after more than 12 months ..........................................................
Deferred tax liabilities:

To be recovered after more than 12 months ..........................................................
Overall movement on the deferred tax account was as follows:


Beginning of period..........................................................................................................
Movement on the deferred tax assets and liabilities in the year was as follows:
Welfare
commitments
Amortization/
depreciation
Other
Total
17,046
(1,417)
-
2,990
526
-
5,474
600
313
25,510
(291)
313
P&L impact ......................................................................

P&L impact: change of statutory rate ....................
Business combinations ................................................
15,629
(1,363)
(2,190)
-
3,516
1,253
(607)
-
6,387
(98)
(1,110)
-
25,532
(208)
(3,907)
-
As of November 30, 2014....................................EThs
12,076
4,162
5,179
21,417

P&L impact ......................................................................
Welfare
commitments
Amortization/
depreciation
Other
Total
At November 30, 2012 ........................................EThs

P&L impact ......................................................................
9,372
(1,072)
25,318
9,372
(1,072)
25,318

P&L impact ......................................................................
P&L impact: change of statutory rate ....................
33,618
(1,436)
(5,157)
1,500
33,618
(1,436)
(5,157)
1,500
28,525
28,525
In 2014, the increase for business combination corresponds to the tax effect of the registration of maintenance contracts
acquired in the business combinations of Hemen companies, in 2013 with the maintenance contracts acquired in the
business combination of Grupo Enor, S.A. (Note 33).
Deferred tax is calculated on the basis of the temporary differences that arise between the tax bases of assets and
liabilities and their carrying amounts in the consolidated financial statements. Deferred tax is determined using tax rates
that have been or are about to be approved at the end of the reporting period and are expected to apply when the related
deferred tax asset is realized or deferred tax liabilitiy is settled. The enforcement of Law 27/2014 on Corporate Income
Tax requires the re-estimate of the figures registered by the Group with an impact of a reduction in deferred tax assets
of EThs 3,907 and a reduction of deferred tax liabilities of EThs 5,157.
NOTE 19. WELFARE COMMITMENTS
Post-employment commitments held with Group employees, consisting of the payment of social security benefit
complements, other retirement benefits and life insurance premiums are met through group insurance policies and are
classified as defined benefit plans.
The liability recognized on the balance sheet for the defined benefits plans is the current value of the obligation at the
balance sheet date less the fair value of the assets attached to the plan, together with adjustments for unrecognized
actuarial losses and gains and costs for past services. The defined benefit obligation is calculated annually, once the salary
adjustment process has concluded in October, using the projected unit credit method. The expense registered under the
heading Employee benefit commitments amounto to EThs 1,807.
The Group has adopted in 2014 retrospectively the modified IAS 19. As a result, comparative information for the year
ended November 30, 2013 in the consolidated financial statements differs from the ones presented in the previous
periods. The amendment of IAS 19 Employee Benefits effect is the elimination of the corridor approach and the
recognition of actuarial losses and gains when they arise. For comparison, in the consolidated statement of changes in
equity, balance of the beginning of the prior year (started on December 1, 2012) includes the unrecognized actuarial
gains as of November 30, 2012 for a total amount of EThs 12,884. Likewise the net equity as of November 30, 2013
increases by EThs 11,823 corresponding to the initial recognition of the actuarial gains as mentioned of EThs 12,884 and
the effect of the recognition of the actuarial gains and retained generated in the fiscal year 2013 for EThs 1,061 and a
reduction in profit of the year for an amount of EThs 6,205.
2014
2013
Obligations on Consolidated Statement of Financial Position:

Current employees ..........................................................................................................
(2,034)
(1,796)
Retired employees............................................................................................................
EThs
(2,034)
(1,796)
The amounts recognized on the Statement of Financial Position were measured as follows:
2014
2013
Present value of financial obligations ........................................................................
39,640
37,639
Fair value of plan assets ................................................................................................
(41,674)
(39,435)
(2,034)
(1,796)
Unrecognized actuarial gains........................................................................................
Liability on Consolidated Statement of Financial Position ........................EThs
(2,034)
(1,796)
83
The evolution of the present value of the defined benefit obligation and the fair value of plan assets was as follows:
Obligation recognized
Plan assets
As of November 30, 2012 ............................................................................................
51,689
(52,391)
Service cost ........................................................................................................................
2,457
Interest cost ......................................................................................................................
1,282
Return on plan assets......................................................................................................
(1,345)
Payments to beneficiaries..............................................................................................
(2,759)
2,759
Contributions ....................................................................................................................
3,693
Actuarial losses/gains......................................................................................................
(11,289)
6,145
Settlements ........................................................................................................................
(3,741)
1,702
As of November 30, 2013 ....................................................................................EThs
37,639
(39,435)
Service cost ........................................................................................................................
1,903
Interest cost ......................................................................................................................
1,221
Return on plan assets......................................................................................................
(1,317)
Payments to beneficiaries..............................................................................................
(2,502)
2,502
Contributions ....................................................................................................................
824
Actuarial losses/gains......................................................................................................
5,211
(6,458)
Settlements ........................................................................................................................
(3,833)
2,210
As of November 30, 2014 ....................................................................................EThs
39,640
(41,674)
2014
2013
The principal actuarial assumptions used were as follows:
The discount rate varies, depending on

the length of the obligation, between ......................................................................
2.14%-0.90%
3.60%-0.90%
Mortality tables ................................................................................................................
PERMF 2000P
PERMF 2000P
Wage increase....................................................................................................................
3.0%
3.0%
Estimated average early retirement age ..................................................................
65 to 67 years
65 to 67 years
2014
2013
The amounts recognized in profit and loss were as follows:
Current service cost ........................................................................................................
1,903
2,457
Interest cost ......................................................................................................................
1,221
1,282
Expected return on plan assets....................................................................................
(1,317)
(1,345)
Settlements ........................................................................................................................
(1,623)
(2,038)
Actuarial (gains)/losses ..................................................................................................
Total included in employee benefit expense (Note 23) ..............................EThs
184
356
The fair value os plan assets (matched insurance contracts) was measured in accordance with IAS 19, section 104, which
allows the equalization of the value of these contracts with that of the obligations. These obligations were externalized
and are subject to a financing plan with the insurance companies ended in 2012.
The amounts of the present value of obligations for defined benefits and the fair value of plan assets for the current
period and the preceding four annual periods are as follows:
2014
Present value of financed obligations ....................
Fair value of plan assets ..............................................
39,640
(41,674)
2013
37,639
(39,435)
2012
51,689
(52,391)
2011
2010
45,504
(43,855)
66,132
(58,946)
The Groups best estimate of the contributions to be paid in the year ending November 30, 2015 is EThs 2,501.
The actuarial gains and losses shown in the income statement and expenses recognized in the equity for an amount of
EThs 1,247 (EThs 5,144 in 2013) basically correspond to the effects of experience on the collective basis of calculation,
EThs 907; attributable to wage deviations that were lower than expected and produced casualties that reduce the
obligation EThs 2,095; and EThs 58 actuarial losses for the falling rates and profitability of the funds.
Additionally, there is a defined contribution plan the annual cost of which is included under the heading Employee
benefit expense for EThs 457 (EThs 476 in 2013).
NOTE 20. BORROWINGS
In 2011, the Group parent has entered into a frame agreement in order to finance acquisitions of companies with Banca
March S.A. for the next three years and to a maximum amount of one hundred million euros; to be split in individual
loans for each transaction with amortization periods between three and five years. Interest rates and additional terms
were fixed and do not differ from market conditions.
At November 30, 2014, the carrying amount of current borrowings from financial institutions was equal to their fair
value, since the impact of applying a discount was not significant. Said amount includes the value of the instalments
payable in the year 2014 and the interest accrued in the year end. The amount of which was EThs 1,202 (EThs 1,473 in
2013).
The noncurrent portion of this debt, which is EThs 10,050, is shown at amortized cost in accordance with the effective
interest rate method. It matures as follows:
Current
Fiscal year 2014
2016
2017
Noncurrent
Borrowings from financial institutions....................
5,222
3,997
903
4,900
Other (Note 10) ............................................................
189
5,411
3,997
903
4,900
EThs
Fiscal year 2013
Current
2015
2016
2017
Noncurrent
Borrowings from financial institutions....................
8,765
5,177
3,966
907
10,050
Other (Note 10) ............................................................
266
9,031
5,177
3,966
907
10,050
EThs
NOTE 21. PROVISION FOR OTHER LIABILITIES AND EXPENSES

2014
2013
5,603
4,797
Noncurrent
Other commitments with employees ......................................................................
Current
Litigations: customer transactions ..............................................................................
1,460
1,561
Guarantees for services and contracts ......................................................................
14,339
14,731
Chamber of Commerce and other taxes ..................................................................
1,579
1,637
EThs
17,378
17,929
The provision for guarantees covers principally free service commitments derived from the signature of contracts by
Group companies, usually with a term of less than one year. Risks provided for relate to litigations and other identified
risks inherent to the Groups activity.
85
The following table shows the movement on the provisions:
As of November 30, 2012...........................................

Provisions/(reversals)
in Income Statement: ..................................................
Amounts used ................................................................
Other..................................................................................
As of November 30, 2013...........................................
Provisions/(reversals)
in Income Statement: ..................................................
Amounts used ................................................................
Other..................................................................................
Other commitments
with employees
Litigations,
customer transactions
Guarantees
Other
3,332
1,494
14,719
1,299
1,034
431
4,797
67
1,561
618
(606)
14,731
203
135
1,637
806
-
(101)
148
(540)
(58)
5,603
1,460
14,339
1,579
NOTE 22. REVENUE

2014
2013
Services rendered ............................................................................................................
545,785
Revenue from works contracts ....................................................................................
39,415
53,835
Exports ................................................................................................................................
152,675
125,485
578,784
Other sales ........................................................................................................................
1,079
1,127
Total revenue..............................................................................................................EThs
738,954
759,231
2014
2013
Wages and salaries ..........................................................................................................
176,408
185,634
NOTE 23. EMPLOYEE BENEFITS
Social security and other ..............................................................................................
70,468
72,096
Employee benefit commitments ................................................................................
184
356
EThs
247,060
258,086
Social security and other includes serverance payments to employees of EThs 10,919 in 2014 (EThs 11,309 in 2013).
The Group has adopted in 2014 retrospectively the modified IAS 19. Such adoption translates in an increase in the cost
of employee benefit commitments in 2013 for an amount of EThs 6,205.
Starting from fiscal year 2011, it is included also the UTC long-term incentive plan, for certain Zardoya Otis executives
who are also considered to be UTC Group executive which includes UTC stock options (Note 34). The expense incurred
for this item in 2014 is EThs 547 (2013: EThs 675).
NOTE 24. RAW MATERIALS AND CONSUMABLES USED
2014
2013
Materials and subcomponents for installations and services ............................
252,774
252,923
Elimination of intra-group transactions....................................................................
(59,623)
(59,121)
Purchase discounts ..........................................................................................................
(5)
(5)
Change in inventories ....................................................................................................
2,398
3,616
EThs
195,544
197,413
NOTE 25. OTHER NET EXPENSES

Depending on their nature, other net expenses are broken down into:
2014
2013
Leases ..................................................................................................................................
18,900
19,783
Repairs and maintenance ..............................................................................................
2,615
2,423
Insurance premiums ........................................................................................................
413
313
Advertising and publicity ..............................................................................................
1,830
1,955
Transport ............................................................................................................................
7,449
7,305
Supplies and other services ..........................................................................................
15,947
15,265
Independent professionals ............................................................................................
4,209
4,164
Subcontrating ....................................................................................................................
606
688
4,383
Other ....................................................................................................................................
4,465
Impairment of receivables (Note 8) ..........................................................................
1,411
4,296
EThs
57,845
60,575
2014
2013
NOTE 26. NET FINANCE COST
Interest expense:
- Loans with financial institutions ..............................................................................
(933)
(2,089)
(933)
(2,089)
737
817
Interest revenue:
- Bank deposits..................................................................................................................
(196)
817
Net foreign exchange gains/(losses) ..........................................................................
(71)
57
EThs
(267)
(1,215)
- Other ................................................................................................................................
NOTE 27. INCOME TAX

2014
2013
Profit before tax................................................................................................................
220,173
218,947
Permanent differences: ..................................................................................................

Profit from foreign companies ....................................................................................
Other differences..............................................................................................................
2,026
(21,229)
-
5,299
(26,068)
-
Prior year temporary differences

in respect of which the relevant deferred tax asset
was not recognized ..........................................................................................................
8,570
5,443
Temporary differences arising in the year in respect of which

the relevant deferred tax asset has not been recognized ..................................
Adjusted profit before tax ............................................................................................
209,540
216,031
Temporary differences arising in the year in respect of which

the relevant deferred tax asset is recognized..........................................................
(2,397)
(8,046)
Taxable income ................................................................................................................
207,143
207,983
Gross tax payable ............................................................................................................
62,143
62,395
Tax credits ..........................................................................................................................
(3,116)
(4,908)
Other differences..............................................................................................................
1,247
Corporate net tax expense from foreign companies ............................................
7,108
8,273
Change in statutory rate................................................................................................
(1,250)
Corporate income tax expense ............................................................................EThs
64,885
67,007
87
The deferred tax asset accumulated at November 30, 2014 amounted to EThs 21,417 (EThs 25,532 in 2013). This
deferred tax asset came basically from temporary differences relating to welfare commitments, bad debt provision,
delayed sales costs and other provisions that will reverse in future years. Furthermore, there are deferred tax liabilities of
EThs 28,525 (EThs 33,618 in 2013) relating to differences generated by goodwill.
The deductible from temporary differences relate mainly to welfare commitments for an amount of EThs 12,076 (EThs
15,629 in 2013), it is expected to compensate them with the following distribution:
Fiscal year 2015: EThs 874
Rest of Fiscal years: EThs 6,615
At the year end, the sum of EThs 59,351 (EThs 62,001 in 2013) had been paid on account of the final corporate income
tax liability. Corporate income tax expense includes income of EThs 2,478 from deferred taxes (income of EThs 781 from
deferred taxes in 2013).
The effective tax rate for Otis Elevadores, Lda. (Portugal) is 30.94% and for Otis Maroc 30% (31% and 30% respectively,
in 2013) and their tax expense for 2014 amounted to EThs 6,810 and EThs 297, respectively (EThs 7,339 and 578,
respectively, in 2013).
For Zardoya Otis, S.A. the years after 2011 are still open to inspection. For most of the Spanish subsidiaries, as well as
for Otis Maroc, S.A., the last four years are still open to inspection. For the companies that form the Otis Elevadores
(Portugal) Group and Enor Portugal, the last ten years are open to inspection, pursuant tu current Portuguese legislation.
In consequence, among other things, additional liabilities could arise as the result of an inspection, due to possible
different interpretations of current tax legislation. However, the directors consider that, if any such liabilities were to
arise, the would not have a significant effect on these annual financial statements.
NOTE 28. EARNINGS PER SHARE
Basic earnings per share are calculated, in accordance with IAS 33, by dividing the profit attributable to equity holders
of the Company by the weighted average number of ordinary shares in issue in the year, excluding ordinary purchased
by the Company. No event that could dilute the earnings per share has occurred.
2014
2013
Profit attributable to equity holders of the Company ........................................
154,031
150,800
Weighted average number of

ordinary shares in issue during the year ..................................................................
425,211,744
406,038,552
Weighted average number of treasury shares ........................................................
(13,861)
(40,484)
Basic earnings per share ................................................................................................
0.36
0.37
NOTE 29. DIVIDENDS PER SHARE

During the years 2013 and 2014, the following interim dividends and part of the share premium were distributed by
Zardoya Otis, S.A.:
Thousands of euros
1st Dividend 0.100 Euros gross per share, charged to the year 2013.
Declared on March 21, 2013 and paid out on April 10, 2013. Shares: 402,154,866
(Treasury stock 46,231) Total = 40,215,486.60 Euros ................................................................................
40,211
Partial distribution of Share Premium: 0.080 Euros gross per share.

Declared on May 27, 2013 and paid out on July 10, 2013. Shares: 402,154,866
32,169
nd
2 Dividend 0.090 Euros gross per share, charged to the year 2013
Declared on September 17, 2013 and paid out on October 10, 2013. Shares: 418,241,060
37,639
Dividend at the end of year ..........................................................................................................................EThs
110,019
3rd Dividend 0.090 Euros gross per share, charged to the year 2013.
Declared on December 10, 2013 and paid out on January 10, 2014. Shares: 418,241,060
37,639
Total 2013 ..........................................................................................................................................................EThs
147,658
1st Dividend 0.090 Euros gross per share, charged to the year 2014.
Declared on March 21, 2014, and paid out on April 10, 2014. Shares: 418,241,060
37,641
Partial distribution of Share Premium: 0.080 Euros gross per share.

Declared on May 27, 2014 and paid out on July 10, 2014. Shares: 418,241,060
33,458
2nd Dividend 0.090 Euros gross per share, charged to the year 2014
Declared on September 17, 2014 and paid out on October 10, 2014. Shares: 434,970,702
39,146
Dividend at the end of year ..........................................................................................................................EThs
110,245
rd
3 Dividend 0.090 Euros gross per share, charged to the year 2014.
Declared on December 10, 2014 and paid out on January 10, 2015. Share: 434,970,702
36,972
Total 2014 ..........................................................................................................................................................EThs
147,217
In relation to the interim dividends distributed by Zardoya Otis, S.A. in the year 2014, the existence of sufficient liquidity
for their distribution was verified, in accordance with the Capital Company Act, art. 277.
89
NOTE 30. CASH GENERATED BY OPERATIONS

The following is a breakdown by item of the cash flow from operations included in the Consolidated Statement of Cash
Flows:
2014
2013
218,915
6,611
15,583
(83)
218,947
6,602
20,364
(140)
(238)
(933)
737
4,050
(2,089)
817
(71)
57
- Inventories ......................................................................................................................
- Trade and other receivables ......................................................................................
- Financial assets at fair value through profit and loss ........................................
- Trade and other payables............................................................................................
2,398
19,357
(62,702)
5,064
(26,474)
(44,322)
Cash generated by operations..............................................................................EThs
199,474
182,876
Profit before tax................................................................................................................

- Depreciation of property, plant and equipment (Note 5)................................
- Amortization of intangible assets (Note 6)..........................................................
- (Profit)/loss on disposals of property, plant and equipment ..........................
- Increase/(reduction)
in retirement benefit obligations..............................................................................
- Interest expense (Note 26) ........................................................................................
- Interest revenue (Note 26) ........................................................................................
- Losses /(gains) on foreign currency
conversion in operating activities (Note 26) ........................................................
Changes in working capital (excluding the effects
of the acquisition and foreign exchange differences upon consolidation):
NOTE 31. CONTINGENCIES

The Group has contingent liabilities in respect of bank guarantees and other matters arising in the ordinary course of
business. It is not foreseen that any material liabilities will arise from the contingent liabilities. The Group has given
guarantees in the ordinary course of business amounting to EThs 20,917 (2013: EThs 20,381).
NOTE 32. COMMITMENTS
Fixed assets purchase commitments
The investments committed at the end of the reporting period but not yet incurred are as follows:
2014
2013
Property, plant and equipment ............................................................................EThs
743
1,950
Intangible assets........................................................................................................EThs
At November 30, 2014, there were firm purchase commitments for the acquisition of fixed assets for an amount of EThs
743 (EThs 1,950 in 2013), of which EThs 264 (EThs 428 in 2013) were anticipated to suppliers.
Lease commitments
The Group leases commercial premises, offices and warehouses under lease contracts for which different conditions have
been agreed. Furthermore, there are other operating lease commitments, principally concerning vehicles. The estimated
annual cost of the totality of the commitments assumed under said lease agreements is:
2014
2013
Premises leased ........................................................................................................
5,208
4,381
Other ............................................................................................................................
4,888
4,888
NOTE 33. BUSINESS COMBINATIONS

a.- Business combinations and mergers (Fiscal year 2013)
GRUPO ASCENSORES ENOR, S.A. (Enor)
On February 7th 2013, the 3,338,463 Enor shares, representatives of 100% of its capital, were exchanged by the
16,913,367 Zardoya Otis, S.A. shares issued to that effect, as registered in the commercial registry of Madrid on February
14, 2013. The book value attributed to these shares at market price was 175,729,883.13 euros. The new shares were
admitted to trading on March 14th 2013, and to that date a total of 2,198,738 new shares have been pledged in favor
of the company.
The shares issued to execute the Capital Increase will be fully paid up by the shareholders owning the shares that
represent 100% of the share capital of ENOR by means of a non-monetary contribution of 3,338,463 registered shares
of ENOR, with a nominal value of 3 euros each, representing the entirety of ENORs share capital.
The total cost of the business combination determined provisionally totalled 175,729,883.13 euros There are no costs
attributable to the business combination other than audit costs, assets valuation by independent expert and legal
expenses on the transfer, which are not significant and registered as period cost when incurred.
In this sense, in April 2014 the pledge on 3% of the shares corresponding to the shareholders of Grupo Ascensores Enor,
S.A. was cancelled once it was verified the compliance with the guarantee clause related to the Annually-computed
Effective Value of the Service Portfolio at September 30, 2013, which, as stated in the initial contribution agreement, was
not to be lower than 99% of the Annually-computed Confirmed Value of the Service Portfolio at September 30, 2012.
The amounts recognized on the business combination at fair value do not differ from the carrying amounts immediately
preceding the combination determined under IFRS, except for the valuation of the intangible assets that arise as a result
of the combination itself, which have been measured as provided for in the acquisition agreement. The contingent
liabilities have been guaranteed by the sellers as mentioned above.
Grupo Ascensores Enor S.A, owns, directly or indirectly, 100% of the capital of Electromoecnica del Noroeste, S.A.;
Ascensores Enor S.A. and Enor Elevacao e Equipamentos Industriais, Lda all of them operating in the field of elevators,
escalators and automatic doors in Spain and Portugal.
The business acquired contributes recurring sales of EThs 31,218 to the Group. Details of the assets and liabilities
acquired are as follows:
Cash and cash equivalents ............................................................................................................................
12,781
Property, plant and equipment ....................................................................................................................
17,599
Intangible assets ..............................................................................................................................................
84,443
Receivables ........................................................................................................................................................
9,618
Inventories..........................................................................................................................................................
1,448
Deferred tax assets ..........................................................................................................................................
313
Other current assets ......................................................................................................................................
146
Other non current assets ..............................................................................................................................
875
Payables ..............................................................................................................................................................
8,994
Deferred tax liabilities ....................................................................................................................................
25,318
Provisions............................................................................................................................................................
488
Other current liabilities..................................................................................................................................
566
There is a difference that gives rise to goodwill of EThs 83 873.

Main assets incorporated to the Group financial statements through the business combinations correspond to fixed
assets, intangible assets and deferred tax liability arising from the recognition of intangible assets. Both the net assets
identified as the goodwill arising in the business combination have been integrated into a new cash generating unit
(CGU) called Group Ascensores Enor.
91
b.- Business combinations and mergers (Fiscal year 2014):

ELECTROMECNICA HEMEN ELEVADORES, S.L. Y ASCENSORES HEMEN, S.L.
In September 2014, Zardoya Otis, S.A. has acquired 90% of the share capital of Electromecnica Hemen Elevadores, S.L.
and 100% de Ascensores Hemen, S.L., both companies dedicated to the maintenance and repair of elevators in the
provinces of lava, Guipzcoa, Burgos and Navarra.
The total cost of the business combination was initially calculated at EThs 9,888, most of which related to acquisition
of the maintenance portfolio. There are no costs attributable to the business combination other than audit costs and
legal expenses on the transfer, which are not significant. The cost of the business combination was determined
provisionally, since some items must be measured definitively one year after the acquisition date. However, there were
no significant variations on the aforementioned figure.
The amounts recognized on the business combination at fair value do not differ from the carrying amounts immediately
preceding the combination determined under IFRS, except for the valuation of the intangible assets that arise as a result
of the combination itself, which have been measured as provided for in the acquisition agreement. The contingent
liabilities have been guaranteed by the sellers and withheld on the price payable.
The business acquired contributes recurring sales of EThs 2,345 to the Group. Details of the assets and liabilities acquired
are as follows:
Cash and cash equivalents ............................................................................................................................
265
Property, plant and equipment ....................................................................................................................
87
Intangible assets ..............................................................................................................................................
5,001
Receivables ........................................................................................................................................................
70
Deferred tax ......................................................................................................................................................
1,500
Payables ..............................................................................................................................................................
284
Non-controlling interest ................................................................................................................................
364
There is a difference that gives rise to goodwill of EThs 6,613

As of November 30, 2014 Electromecnica Hemen Elevadores, S.L. and Ascensores Hemen, S.L., bring to the consolidated
figures EThs 413 of total sales and a profit before tax for the period of EThs 130.
NOTE 34. RELATED-PARTY TRANSACTIONS
United Technologies Holdings S.A. (incorporated in France) holds 49.63% of the shares of the parent company of the
group Zardoya Otis S.A.. United Technologies Corporation (incorporated in the United States) is the parent company of
United Technologies Holdings, S.A.
The following transactions were performed with related parties:
(a) Transactions with Otis Elevator Co
Royalties ..............................................................................................................................
Charge-back of costs relating to the R&D Center ........................................
Payables ......................................................................................................................EThs
2014
2013
17,726
19,219
1,340
654
437
475
(b) Transations with Otis Group company,

sales and purchases of goods and services
2014
2013
Sales......................................................................................................................................
154,909
129,036
Purchases ...........................................................................................................................
34,183
29,346
Receivables ........................................................................................................................
26,944
31,639
Payables ......................................................................................................................EThs
8,854
7,536
The Group periodically requires for its revision by the Audit Committee the opinion of an external concerning the transfer
price poling established for the transactions with other Otis entities.
The Group has been party to a technical assistance agreement, Intellectual Property License Agreement, with Otis
Elevator Company since 1999. This agreement allows the Company to use the trademarks and have access to Research
& Development activities and global product development. The cost of this agreement is a royalty of 3.5% of sales to
end customers.
Additionally, in September 2010, a Recharge Agreement was signed with United Technologies Corporation (UTC), which
concerned the possibility that certain Zardoya Otis, S.A. executives who were also considered to be UTC group
executives, since they held important management responsibilities should benefit, depending on their performance and
the attainment of joint objectives of Zardoya Otis, Otis and United Technologies Corporation (UTC), from the UTC longterm incentive plan, which includes UTC share-based compensation schemes. The Agreement is applicable to incentives
assigned as from December 1, 2010. The cost, approved by the Audit Committee, is included under the employee benefit
expense heading, generating a credit account with Group companies (presented as other provisions in the statement of
financial position). The cost, approved by the Audit Committee, is included in employee benefit expenses, generating a
credit account with UTC Group companies (shown as other provisions in the statement of financial position). The
expense originated by this item is included under the employee benefit expense heading. For 2014, the expense was EThs
547 (Eths 675 in fiscal year 2013), relating to the fair value of the assets to which it is indexed, which was EThs 2,484.
The overall compensation for all items accrued during the year by the members of the Board of Directors was EThs 1,645
(EThs 1,368 in 2013) and comprised the following items:
2014
2013
Fixed compensation ........................................................................................................
192
174
Variable compensation ..................................................................................................
90
68
By-law stipulated items ................................................................................................
1,000
1,000
Other long-term benefits ..............................................................................................
322
77
Pension plan contributions............................................................................................
41
49
Total..............................................................................................................................EThs
1,645
1,368
At the 2014 and 2013 year ends, the Company had not granted any advance payments or credits to the members of the
Board of Directors.
Additionally, the overall compensation accrued for all items by members of the Groups senior management (nondirectors) was EThs 350 (EThs 974 in 2013), as reported in sections C.1.15 and C.1.16 of the Annual Corporate
Governance Report 2014.
Likewise, in compliance with article 229 of the Capital Company Act, the members of the Board of Directors state that
neither they nor any parties related to them have holdings in the share capital of or hold office or perform duties in
companies with an activity that is identical, analogous or complementary to the activities that form the corporate
purpose of Zardoya Otis, S.A. and its consolidated group, except in the following cases:
Mr. Jos Mara Loizaga Viguri is a director of Actividades de Contratacin y Servicios S.A. (ACS).
The Board members D. Mario Abajo Garca, D. Mark George, D. Philippe Delpech, D. Pierre Dejoux and D. Bernardo
Calleja Fernandez hold positions in other companies of the Otis Elevator Group worldwide as follows:
93
Name or corporate name

of director
Mario Abajo Garca
Mark George
Pierre Dejoux
Bernardo Calleja Fernndez
Name or corporate name of significant shareholder
Designation
Otis Elevadores Lda. (Portugal)

Otis Elevator Company (New Jersey)
Otis Elevator Company (Delaware, USA)
Otis Elevator International, Inc. (Delaware, USA)
OTIS Limited
Buga Otis Asansor Sanayi ve Ticaret A.S. (Turkey)
Ascensores Serra, S.A.
C. Veremis Otis, S.A. (Greece)
Otis Elevadores (Portugal)
Montes Talln, S.L.
Otis Servizi S.r.l. (Italy)
Grupo Ascensores Enor, S.A.
Acresa Cardellach, S.L.

Buga Otis Asansor Sanayi ve Ticaret A.S. (Turkey)
Director
Director
Director
Director
Chairman
Director
Director
Director
Chairman
Director
Chairman
Chairman
Personal
representative of
Director
(Zardoya Otis, S.A.)
Personal
representative
of Director
(Zardoya Otis, S.A.)
Chairman
Vice Chairman
Director
Director
Mototraccin Elctrica Latierro, S.A
Otis Maroc, S.A. (Morocco)
Philippe Delpech
Jos Mara Loizaga Viguri
Mara Luisa Zardoya Arana
(personal representative of
Director Euro-Syns, S.A.)
NOTE 35. INFORMACIN SOBRE MEDIO AMBIENTE

At November 30, 2014, the Group was not aware of any contingency, risk or litigation in progress related to the
protection and improvement of the environment and, therefore, had not recorded any provision related to environmental
actions on the statement of financial position at November 30, 2014.
The Group has approved a Corporate Environmental Policy Manual, fixing the main procedures and actions to be followed
in this field in plants, offices, transport, Installation and Service.
The principal programs established are intended to reduce to effects of environmental pollution by:
Control, reciclaje y disminucin de residuos altamente contaminantes (aceites)
Control y reduccin de residuos reciclables (embalajes)
Control y reduccin de emisiones al aire por procesos industriales y de combustin
Control y reduccin de consumo de agua y energa
The Madrid, San Sebastin and Mungua production centres renewed their ISO 1400 certification until 2016.
The Madrid-Legans plant was designed to keep energy consumption to a minimum and included the installation of
photovoltaic panels on the roof, the carrying amount of which is EThs 4,153, with accumulated depreciation of EThs 926
at the end of the reporting period. When these photovoltaic panels were brought into operation, they gave rise for a tax
credit of EThs 166 for investment in the use of renewable energy. There are no other significant investments for
protection of the environment.
In addition, expenses of EThs 31 for waste removal or recycling were recognized in 2014.
NOTE 36. EVENTS AFTER THE END OF THE REPORTING PERIOD

On December 10, 2014 Zardoya Otis, S.A declared the third dividend corresponding to 2014, third on account of the
fiscal year profit, for an amount of 0.085 Euros gross per share, resulting in a total dividend gross of EThs. 36,972 (Note
8). Payment of the dividend was done on January 12, 2015.
On December 17, 2014 the subsidiary Puertas Automaticas Portis, S.L. acquired 1.06% of the non-controlling interest of
its own shares for an amount of Eths 394. These own shares were amortized by means of a capital reduction at the same
date. The transaction represents a change in the Zardoya Otis S.A. participation that increases from 93.83% to 94.83%
ownership of such company.
On 9 January 2015, Zardoya Otis, S.A. was informed of the conclusion of the syndication agreement concluded in the
frame of the Enor transaction between the two major shareholders of the company: United Technologies Holdings, S.A.S.
and Euro Syns, S.A. on August 3, 2012. The syndication agreement should end on the date in which UTC owns shares
representing 50.01% or more of the share capital of the company, which has been notified on 12 January 2015 by UTH
to the Comision Nacional del Mercado de Valores by means of the corresponding communication of significant
participation.
NOTE 37. OTHER INFORMATION
(a) Number of Group employees by category (medium and closing fiscal year)
Men
Women
2014
Managers ............................................................................................................................
68
76
Administration/workshop/field supervisors ............................................................
485
27
512
Engineers, university graduates and other experts................................................
238
47
285
Administrative and technical personnel....................................................................
482
419
901
Other workers....................................................................................................................
3,345
18
3,363
4,618
519
5,137
Men
Women
2013
Managers ............................................................................................................................
70
76
Administration/workshop/field supervisors ............................................................
475
22
497
Engineers, university graduates and other experts................................................
241
46
287
Administrative and technical personnel....................................................................
491
447
938
Other workers....................................................................................................................
3,579
22
3,601
4,856
543
5,399
(b) Fees of account auditors and companies belonging to their group or related companies
The amount accrued by PricewaterhouseCoopers Auditores, S.L., which audits the Zardoya Otis Group, for the year 2014
is EThs 334 (EThs 334 in 2013), including the fees paid for the audit of processes required to comply with the rules for
public companies in USA. Likewise, fees accrued during the year by other companies in the PwC network as a result of
audit to foreign subsidiaries are EThs 49 (EThs 48 in 2013).
The fees accrued during the year by PricewaterhouseCoopers Auditores, S.L. and other companies that use the PwC brand
name as a result of other services rendered to the Group, were EThs 87 (EThs 79 in 2013, including audit services
performed within the scope of the acquisition of group Enor).
95
BOARD OF DIRECTORS, COMMITTEE & COMMISSION

(for the year ended November 30, 2014)
Board of Directors
Mr. Mario Abajo Garca
Chairman
Mr. Jos Mara Loizaga Viguri
Deputy Chairman
Mr. Bernardo Calleja Fernndez
CEO
Otis Elevator Company
(Mrs. Muriel Makharine)
Mr. Mark George
Mr. Pierre Dejoux
Mr. Philippe Delpech
Mr. Alberto Javier Zardoya Arana
EURO-SYNS, S.A.
(Mrs. Mara Luisa Zardoya Arana)
Audit Committee
Mr. Mark George
Chairman
Mr. Pierre Dejoux
Nominating Commission
Chairman
Mr. Philippe Delpech
Otis Elevator Company
(Mrs. Muriel Makharine)
Mr. Alberto Fernndez-Ibarburu Arocena

Secretary
97
Agenda
1. Examination and approval of the annual financial statements and management reports of both, the Company and its
Consolidated Group for the year running from December 1, 2013 to November 30, 2014.
2. Application of the profit for the year running from December 1, 2013 to November 30, 2014.
3. Approval of the performance of the Board of Directors and, in particular, of the distribution of dividends charged to the
profit for the year running from December 1, 2013 to November 30, 2014.
4. Approval of a partial cash distribution of the share premium for a gross amount of 0.08 euros per share.
5. Re-election of the auditors for the Company and its consolidated group for the year running from December 1, 2014 to
November 30, 2015.
6. Establishing the number of directors at eleven (11). Appointment or, if applicable, re-election of the following members of
the Board of Directors:
6.1. Establishing the number of directors at eleven (11).
6.2. Re-election of Mr. Mario Abajo Garca as an other external director at the proposal of the Board of Directors.
6.3. Re-election of Euro-Syns, S.A. as a propietary director at the proposal of the Board of Directors and
acknowledgement of the appointment of Mr. Pedro Sinz de Baranda as its personal representative.
6.4. Re-election of Otis Elevator Company as a propietary director at the proposal of the Board of Directors and
acknowledgement of the continuation of Mr. Muriel Makharine as its personal representative.
6.5. Appointment of Mr. Jos Miguel Andrs Torrecillas as an independent director at the proposal of the Board of
Directors.
6.6. Appointment of Mr. Patrick Blethon as a propietary director at the proposal of the Board of Directors.
6.7. Resulting composition of the Board of Directors.
7. Share capital increase in the ratio of one new share for every twenty-five old shares by the issuance of bonus shares
charged to the freely-available voluntary reserve and request to the Madrid, Barcelona, Bilbao and Valencia Stock Exchanges
for the listing of said shares. Amendment of article 5 of the Bylaws.
8. Approval, if appropriate, of the following amendments to the Byways, principally to adapt their wording to the new
developments in the legislation introduced by Law 31/2014 of December 3, whereby the Capital Companies Law was
amended to improve corporate governance.
8.1. Approval of the amendment of the following articles of the Bylaws concerning the operation the Companys
General Shareholders Meeting: article 12 (Type of General Meeting); article 13 (Notice of General Shareholders
Meeting); article 16 (Chairmanship, deliberations and adoption of resolution); and article 17 (Attributes and
competencies of the General Shareholders Meeting).
8.2. Approval of the amendment of the following articles of the Bylaws concerning the operation of the Companys
Board of Directors: article 20 (Composition of the Board); article 21 (Term of office of Directors); article 22 (Powers
of the Board); and article 24 (Director compensation).
8.3. Approval of the amendment of article 24 (bis) of the Bylaws concerning the operation of the Companys Audit
Committee.
8.4. Approval of the inclusion of a new article (ter) (Nominating and Compensation Commission) of the Bylaws,
concerning the operation of the Companys Nominating and Compensation Commission.
9. Approval, if appropriate, of the amendment of the following articles of the Regulations of the General Shareholders
Meeting, principally to adapt their wording to the new developments in the legislation introduced by the aforementioned
Law 31/2014: article 4 (Calling a meeting), article 5 (Shareholder rights); article 6 (Representation); and article 10
(Deliberation and adoption of resolutions).
10. Information on the amendments made to the Regulations of the Board of Directors since the last General Shareholders
Meeting, in accordance with the Capital Companies Law, article 528, including, in particular, the amendments made to adapt
their wording to the new developments in the legislation introduced by Law 31/2014.
11. Consultative ballot on the 2014 Annual Report on Director Compensation in accordance with the provisions of the
Capital Companies Law, article 541.
12. Authorization to the Board of Directors for the direct or indirect derivative acquisition of treasury stock, within the limits
and meeting the requirements set forth in article 146 and related articles of the Capital Companies Law.
13. Information on the percentage applicable to profit sharing, in accordance with the Capital Companies Law article 218.
14. Delegation to the Board of Directors for the interpretation, rectification, execution, formalization and registration of the
resolutions adopted.
15. Request and questions.
16. Approval of the Minutes.
99
of the last five years
101
Consolidated Profit and Loss Accounts

(In millions of euros)
2014
2013*
%
SALES
2012
2011
2010
%
2009
739,0 100.0
759,2 100.0
809,1 100.0
819,1 100.0
862,8 100.0
885,1 100.0
(195,5) (26.5)
(197,4) (26.0)
(216,5) (26.8)
(220,7) (26.9)
(231,9) (26.9)
(259,1) (29.3)
Raw materials
and consumable used
GROSS PROFIT
543,4
73.5
561,8 74.0
592,6 73.2
598,4 73.1
630,9
Other net expenses
(56,4)
(7.6)
(56,3) (7.4)
(60,0) (7.4)
(56,5) (6.9)
(61,5) (7.1)
(63,5) (7.2)
(247,1) (33.4)
(251,9) (33.2)
(252,2) (31.2)
(249,8) (30.5)
(250,0) (29.0)
(250,7) (28.3)
(4,3) (0.6)
(7,0) (0.9)
(7,5) (0.9)
(18,6) (2.1)
(16,5) (1.8)
Personnel expenses
73.1
626,0
70.7
Impairment of
accounts receivable
(1,4)
(0.2)
4,0
0.5
242,6
32.8
253,1 33.3
and impairment losses
(22,2)
(3.0)
OPERATING PROFIT
220,4
29.8
0,7
0.1
(0,9)
(0.1)
Net foreign exchange differences (0,1)
0.0
0,0
0.0
0,0
Other gains and losses
0,1
0.0
0,1
0.0
0,0
PROFIT BEFORE TAX
220.2
29.8
225,1 29.6
261,0 32.3
276,1 33.7
291,8
Income tax expenses
(64,9)
(8.8)
(67,0) (8.8)
(76,9) (9.5)
(79,5) (9.7)
(83,8) (9.7)
(84,3) (9.6)
PROFIT FOR THE YEAR
155,3
21.0
158,1 20.8
184,1 22.8
196,6 24.0
208,0
24.1
203,8
23.0
(1,3)
(0.2)
(1,1) (0.1)
(3,0) (0.4)
(2,6) (0.3)
(2,9) (0.3)
(1,7)
0.2
ATTRIBUTABLE TO EQUITY
HOLDERS OF THE COMPANY 154,0
20.8
157,0 20.7
181,1 22.4
194,0 23.7
205,1
23.8
202,1
22.8
CASH FLOW (1)
23.8
183,9 24.2
197,9 24.5
209,2 25.5
221,0
25.6
216,2
24.4
Other income
EBITDA
3,8
0.5
4,6
0.6
4,6
0.6
4,7
0.5
4,2
0.4
278,0 34.4
289,2 35.3
305,5
35.4
299,5
33.8
(26,9) (3.5)
(16,8) (2.1)
(15,2) (1.9)
(15,9) (1.8)
(14,2) (1.6)
226,2 29.8
261,2 32.3
274,4 33.5
289,6
33.6
285,3
32.2
2,6
0.3
4,0
0.4
Amortization, depreciation
Financial income
Financial expenses
Minority interests
0,8
0.1
(2,0) (0.3)
0,9
0.1
2,5
0.3
(1,1) (0.1)
(0,4)
0.0
(0,3) (0.1)
0.0
0,0
0.0
(0,1)
0.0
0,0
0.0
0.0
33.8
(1,3) (0.1)
0,1
0.0
(0,0)
0.0
288,1
32.6
PROFIT FOR THE YEAR
176,2
(1) Net income + Depreciation.

(*) Restated in application of IAS 19R
Consolidated Balance Sheets

CONSOLIDATED BALANCE SHEET (After distribution of the profit obtained in the year)
(In millions of euros)
2014
ASSETS
Property, plant & equipment
2013*
%
64,6
9,1
2012
%
66,7
2011
9,3
52,7
2010
2009
%
9,4
51,5
9,2
54,6
9,4
57,8
9,6
Intangible assets
199,3 28,0
206,9 29,0
134,0
23,9
121,3
21,7
118,9
20,4
119,7
19,8
Goodwill
141,3 19,8
134,6 18,9
56,7
10,1
46,9
8,4
42,2
7,2
40,3
6,7
Financial investments
Deferred tax assets
Other non current assets
NON CURRENT ASSETS
Inventories
Financial receivables
0,7
0,1
0,7
0,1
0,5
0,1
2,6
0,5
0,6
0,1
0,6
0,1
21,4
3,0
25,6
3,6
25,5
4,5
26,1
4,7
24,6
4,2
22,7
3,8
6,5
0,9
6,1
0,9
6,3
1,1
5,5
1,0
3,8
0,7
2,9
0,5
440,6 61,7
275,7
49,3
253,9
45,4
244,7
42,0
244,0
40,3
433,8 60,9
22,7
3,2
25,1
3,5
28,7
5,1
22,0
3,9
17,6
3,0
18,4
3,0
0,3
0,0
0,4
0,1
0,5
0,1
0,4
0,1
0,6
0,1
0,7
0,1
202,9 28,4
Trade and other receivables
183,3 25,7
Cash and cash equivalents
72,0 10,1
44,9
218,7
39,0
215,8
38,6
228,2
39,2
237,6
39,3
6,3
37,1
6,6
66,8
12,0
91,0
15,7
104,1
17,2
50,8
305,0
54,6
337,4
58,0
360,8
59,7
CURRENT ASSETS
278,3 39,1
273,3 38,3
285,0
TOTAL ASSETS
712,1 100,0
713,9 100,0
560,7 100,0
558,9 100,0
582,1 100,0
604,8 100,0
LIABILITIES
Social capital
Share Premium
Legal Reserve
Reserves in subsidiaries
& other reserves
Treasury stock
NET EQUITY
Foreign exchanges differences
MINORITY INTERESTS
TOTAL NET EQUITY
43,5
6,1
108,4 15,2
8,7
1,2
251,6 35,3
(0,1)
0,0
412,1 57,9
0,0
0,0
16,5
2,3
428,6 60,2
5,9
38,5
6,9
36,7
6,6
34,9
6,0
33,3
5,5
141,9 19,9
41,8
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
1,2
7,7
1,4
7,0
1,3
7,0
1,2
6,7
1,1
215,1 30,1
192,6
34,3
194,1
34,7
153,1
26,3
143,4
23,7
41,1
195,0
33,5
183,4
30,3
(0,3) (0,1)
(0,3)
0,0
(0,3)
0,0
8,5
(0,3)
0,0
407,0 57,0
(0,4) (0,1)
238,4
42,5
(0,2)
0,0
(8,3) (1,5)
229,5
(0,3)
0,0
15,6
2,2
24,1
4,3
14,1
2,5
10,0
1,7
9,5
1,6
422,3 59,2
262,3
46,8
243,3
43,5
204,8
35,2
192,6
31,8
15,8
2,7
42,3
7,0
Other payables
3,7
0,5
7,9
1,1
1,7
0,3
5,2
0,9
Borrowings
4,9
0,7
10,1
1,4
18,5
3,3
10,7
1,9
Welfare commitments
0,0
0,0
0,0
0,0
12,2
2,2
12,8
2,3
19,7
3,4
21,4
3,5
Provisions for other

liabilities and expenses
5,6
0,8
4,8
0,7
3,3
0,6
3,0
0,5
2,5
0,4
2,3
0,4
Deferred tax liabilities
28,5
4,0
33,6
4,7
9,4
1,7
3,6
0,6
2,1
0,4
42,7
6,0
56,4
7,9
45,1
8,0
35,3
6,3
40,1
6,9
66,0
10,9
201,4 28,2
210,9
37,6
232,9
41,7
281,7
48,4
279,8
46,3
NON CURRENT LIABILITIES

Trade and other payables
209,9 29,5
Current tax liabilities
8,1
1,1
6,9
1,0
12,3
2,2
25,8
4,6
32,0
5,5
31,8
5,3
Borrowings
5,4
0,8
9,0
1,3
12,6
2,2
4,0
0,7
2,2
0,4
14,9
2,5
17,4
2,4
17,9
2,5
17,5
3,1
17,6
3,1
21,2
3,6
19,7
3,3
Provisions for other

liabilities and expenses
CURRENT LIABILITIES
240,8 33,8
235,2 32,9
253,3
45,2
280,3
50,2
337,2
57,9
346,2
57,2
TOTAL LIABILITIES
283,5 39,8
291,6 40,8
298,4
53,2
315,6
56,5
377,3
64,8
412,2
68,2
TOTAL EQUITY
AND LIABILITIES
712,1 100,0
713,9 100,0
560,7 100,0
558,9 100,0
582,1 100,0
604,8 100,0
(*) Restated in application of IAS 19R
103
Network
Headquarters
Madrid
Golfo de Salnica, 73 - 28033
Tels.: 91 343 51 00 - 343 53 48
Defensor del Cliente
Tel.: 900-12 42 41
e-mail: defensor.cliente@otis.com
Informacin al Accionista
Tel.: 91 343 51 05
e-mail: info.accionista@otis.com
www.otis.com
Factories
Madrid
Benjamn Outram, 1
Parque tecnolgico de Legans
28918 Legans
Tels.: 91 343 54 14 - 343 51 00
Fax: 91 343 54 52
San Sebastin
Camino de Jolastokieta, 1 - 20017
Tel.: 943 40 40 45. Fax: 943 39 15 45
Mungua (Vizcaya)
Carmelo Echegaray, 13 - 48100
Tel.: 682 41 96 00. Fax: 94 674 15 76
Regional Branch offices

ANDALUCIA OCCIDENTAL
Sevilla
C/ Aviacin, 16 Pta. Baja
Edif. Morera I
P.I. Calonge - 41007
Tel.: 659 95 25 38. Fax: 954 35 33 28
e-mail: sevilla@otis.com
Aeropuerto
Edif. Morera I
Tel.: 648 06 94 95. Fax: 954 35 33 28
e-mail: sevilla.aeropuerto@otis.com
Sevilla Sur
Edif. Morera & Ballejo
Tel.: 626 60 23 30. Fax: 954 35 33 28
e-mail: triana@otis.com
San Fernando
Almirante Len Herrero, 23
San Fernando - 11100
Algeciras
Urb. Las Colinas. C/Suspiros, 7 B
11204
Tel.: 639 82 14 62. Fax: 956 65 75 00
e-mail: algeciras@otis.com
Ceuta
C/ Real, 90
patio interior (local 9) - 51001
Tel.: 639 82 13 95. Fax: 956 51 67 24
e-mail: ceuta@otis.com
Gibraltar
Urb. Las Colinas. C/Suspiros, 7 B
11204
Tel.: 003 507 50 02
Fax: 003 507 50 04
Sanlucar
Zaragoza, 34 - Edif. Pajarete - 11405
Tel.: 639 82 26 32. Fax: 956 34 31 32
e-mail: sanlucar@otis.com
ANDALUCIA ORIENTAL
Granada
C/ ngel Barrios, 3 - 18004
Tel.: 682 80 21 24. Fax: 958 26 14 54
e-mail: granada@otis.com
La Chana
Joaquina Eguaras, 23.
Edif. Austral - 18013
Tel.: 689 18 88 79. Fax: 958 15 88 09
e-mail: lachana@otis.com
Sierra Nevada
C/ ngel Barrios, 3 - 18004
Tel.: 689 18 85 56. Fax: 958 26 14 54
e-mail: sierranevada@otis.com
Guadix
Encarnacin Alexandre, 4 - 18500
Tel.: 958 66 28 02
Motril
Pablo Picasso, 12 - 18600
Tel.: 689 18 88 41. Fax: 958 82 54 01
e-mail: motril@otis.com
Almera
Parque Nicols Salmern, 73 - 04002
Tel.: 648 58 58 18. Fax: 950 25 28 98
e-mail: almeria@otis.com
Sevilla
Edif. Morera & Ballejo
Tel.: 689 23 73 63. Fax: 954 35 33 28
e-mail: eguren.sevilla@egurenkone.com
Garrucha
Urb. La Solana del Mar (Local 7)
04630
Tel.: 650 54 38 57. Fax 950 46 01 83
e-mail: garrucha@otis.com
Crdoba
Avda. Aeropuerto, 35 - 14004
Tel.: 681 24 14 45. Fax: 957 45 18 11
e-mail: cordoba.zosa@otis.com
Jan
Hermanos Pinzn, 6 - 23007
Tel.: 689 18 88 37. Fax: 953 25 29 01
e-mail: jaen@otis.com
Huelva
Parque Empresarial Mirador del Odiel
C/ Lentisco, 3 - local 1,4 - 21001
Tel.: 682 62 00 80. Fax: 959 25 44 95
e-mail: huelva@otis.com
Linares
C/ Pintor el Greco, 12 bajo - 23700
Tel.: 689 18 88 39. Fax: 953 69 32 96
e-mail: linares@otis.com
Jerez
Zaragoza, 34. Edificio Pajarete - 11405
Tels.: 618 92 94 47. Fax: 956 34 31 32
e-mail: jerez@otis.com
Cdiz
Molino del Papel, 7 (P.I. El Palmar)
11500 Puerto de Santa Mara
Tel.: 680 40 96 25: Fax: 956 87 57 41
e-mail: eguren.cadiz@egurenkone.com
Cdiz
Sta. Mara de la Cabeza, 6 - 11401
Tel.: 626 46 83 83: Fax: 956 28 09 16
e-mail: cadiz@otis.com
beda
C/ Pintor el Greco, 12 bajo - 23700
Tel.: 689 18 88 39. Fax: 953 69 32 96
e-mail: linares@otis.com
Mlaga
La Unin, 47. Edif. Genco - 29006
Tel.: 650 82 89 63 . Fax: 952 32 69 58
e-mail: malaga@otis.com
Marbella
Avda. Trapiche. Edif. Sonsoles, 129600
Tel.: 648 40 00 37. Fax: 952 77 17 41
e-mail: marbella@otis.com
Fuengirola
Vizcaya, 16 - Edificio Parquesol, 2
Local 1 - 29640
Tel.: 689 18 90 42. Fax: 952 66 67 34
e-mail: fuengirola@otis.com
Torremolinos
Avda. Palma de Mallorca
Local 53. Edif. Pza. del Mirador 29620
Tel.: 690 92 44 76. Fax: 952 38 25 22
e-mail: torremolinos@otis.com
Estepona
C/ Menorca, s/n - Edificio Los Viedos
Bloque 4 - 29680
Tel.: 689 19 15 11. Fax: 952 80 56 24
e-mail: estepona@otis.com
Torre del Mar
C/ La Paz, 1 esq. C/ Princesa - 29740
Tel.: 689 19 15 43. Fax: 952 54 07 13
e-mail: torredelmar@otis.com
Melilla
Fortuny, 17 - 52004
Tel.: 689 19 15 72. Fax: 952 69 55 14
e-mail: melilla@otis.com
ARAGON, LA RIOJA Y SORIA
Zaragoza
C/ Antonio Cnovas, 16 - 50004
Tel.: 689 18 70 01
Fax: 976 22 16 13
e-mail: aragon@otis.com
Huesca
Ingeniero Montaner, 6 bajos - 22004
Tel.: 689 18 70 21. Fax: 974 21 41 66
e-mail: huesca@otis.com
Jaca
P de la Constitucin, 2 interior22700
Tel.: 660 41 66 59. Fax: 974 36 14 24
e-mail: jaca@otis.com
Alcaiz
Avda. .Galn Bergua, 13 bajos 44600
Tel.: 659 74 29 22.
Ebro
C/ Virginia Woolf, local 1 - 50018
Tel.: 689 18 70 10. Fax: 976 51 00 92
e-mail: ebro@otis.com
Teruel
C/ Los Enebros, 74- 44002
Tel.: 689 18 70 07. Fax: 978 22 11 04
e-mail: teruel@otis.com
Logroo
C/ Navarrete el Mudo, 5 bajo - 26005
Tel.: 682 04 26 22. Fax: 941 22 88 30
e-mail: logrono@otis.com
Soria
C/ Maestro Garca Muoz, 24 bajo
42004
Tel.: 689 19 56 25. Fax: 975 24 02 75
e-mail: soria@otis.com
CANARIAS
Tenerife
Felipe Pedrell, 12 - 38007
Tel.: 659 79 05 46. Fax: 922 20 51 52
e-mail: tenerife@otis.com
Los Cristianos
Santa Rosa, 1 Edificio Royal Palm
Urb. Oasis del Sur - 38650
Tel.: 630 32 06 40. Fax: 922 79 51 08
e-mail: loscristianos@otis.com
Puerto de la Cruz
Enrique Talk, 12 - 38400
Tel.: 630 29 21 93. Fax: 922 37 16 32
e-mail: puertodelacruz@otis.com
La Laguna
C/ Felipe Pedrell, 12 - 38007
Tel.: 630 31 28 29. Fax: 922 20 51 52
e-mail: lalaguna@otis.com
Las Palmas
Edificio Jardines de Galicia
Ctra. de El Cardn, 83 local - 35010
Tel.: 689 23 73 25 - 689 23 73 23
Fax: 928 22 32 91
mail: eguren.canarias@egurenkone.com
Las Palmas
Trasera Av. Rafael Cabrera, 16.
(Local E) Edificio Mjico - 35002
Tel.: 618 86 05 79. Fax: 928 23 13 33
e-mail: laspalmas@otis.com
Las Canteras (Vegueta)
Albareda, 15 - 35008
Tels. 660 98 89 87 - 686 04 64 86
Fax 928 26 42 50
e-mail: lascanteras@otis.com
Arrecife de Lanzarote
Len y Castillo, 155 - 35500
Tel.: 686 04 82 79. Fax: 928 80 78 92
e-mail: lanzarote@otis.com
Fuerteventura
C/ Mahn, 44 Bajo (Gran Tarajal)
Tuineje - 35620
Tel. 686 04 77 30. Fax 928 16 51 68
e-mail: fuerteventura@otis.com
Maspalomas
C/ de la Cizalla M3 - nave 6
Agimes - 35118
Tel.: 686 04 77 16. Fax: 928 77 10 81
e-mail: maspalomas@otis.com
CASTILLA LA MANCHA
Toledo
Avda. Santa Brbara s/n - 45006
Tel.: 619 25 88 54. Fax: 925 21 39 06
e-mail: toledo@otis.com
Cceres
C/ Bioy Casares, 6 Edificio Miradores
10005
Tel.: 689 17 23 73. Fax: 927 23 81 14
e-mail: caceres@otis.com
Mrida
C/ Antonio Hernndez Gil, 19 - 06800
Tel.: 689 17 29 15. Fax: 924 31 89 88
e-mail: merida@otis.com
CASTILLA LEON
Valladolid
Trtola, 21-23 - 47012
Tel.: 626 31 40 19. Fax: 983 29 51 62
e-mail: valladolid@otis.com
Medina del Campo
C/ Trtola, 21-23 - 47012
Palencia
Avda. Santander, 44 - 34003
Tel.: 689 43 37 15. Fax: 979 74 50 83
e-mail: palencia@otis.com
Guardo
Avda. Santander, 44 - 34003
Burgos
Europa, 8 - 09001
Tel.: 689 19 55 67. Fax: 947 20 10 55
e-mail: burgos@otis.com
Miranda de Ebro
Europa, 8 - 09001
Aranda de Duero
Europa, 8 - 09001
Len
Moiss de Len, bloque 22, 1
Polgono X - 24006
Tel.: 689 19 55 89. Fax: 987 25 75 20
e-mail: leon@otis.com
Astorga
Moiss de Len, bloque 22, 1
Polgono X - 24006
Albacete
Gmez Gil, 12 - 02003
Tel.: 619 25 07 77. Fax: 967 23 83 13
e-mail: albacete@otis.com
Ponferrada
Batalla de Pavia, 2 - 24400
Tel.: 689 19 56 04. Fax: 987 41 09 95
e-mail: ponferrada@otis.com
La Roda
Gmez Gil, 12 - 02003
02630 La Roda - (Albacete)
Tel.: 676 43 59 44. Fax: 967 23 83 13
Avila
Paseo de San Roque, 2 - 05003
Tel.: 660 75 36 93. Fax: 920 22 11 07
e-mail: avila@otis.com
Cuenca
C/ Guardia Civil, 2 - 16003
Tel.: 609 51 63 05. Fax: 969 23 76 10
e-mail: castilla@otis.com
Segovia
Sargento Provisional, 5 - 40005
Tel.: 660 75 43 59 - Fax: 921 44 28 07
e-mail: segovia@otis.com
Talavera
Avda. Pio XII, 51 - 45600
Tel.: 677 49 24 10. Fax: 925 80 32 81
Salamanca
C/ Vertical Sexta - P.I. El Montalvo III
(Carbajosa de la Sagrada) - 37188
Tel.: 659 36 46 01. Fax: 923 18 91 69
e-mail: salamanca@otis.com
Guadalajara
C/ Julin Besteiro, 19
(local comercial) - 19004
Tel.: 609 51 64 15. Fax: 949 20 33 47
e-mail: guadalajara@otis.com
Ciudad Real
Alcntara, 4 - 13004
Tel.: 639 03 65 07. Fax: 926 22 58 54
e-mail: ciudadreal@otis.com
Barrio Industria
C/ Gmez Gil, 12 - 02003
Tels.: 619 62 30 08 - 619 25 07 77
Fax: 967 23 83 13
Almansa
Pl. Santiago Bernabeu, 1 bajo - 02640
Tel.: 639 16 38 85. Fax: 967 31 80 04
Extremadura
C/ Gaspar Mndez, 1 (local) - 06011
Tel.: 689 17 23 54. Fax: 924 23 59 42
e-mail: extremadura@otis.com
Zamora
Cardenal Mella, 16 - 49009
Tel.: 660 75 39 41. Fax: 980 52 24 21
e-mail: zamora@otis.com
CATALUA Y BALEARES
Barcelona Capital
C/ Tnger, 53-55 - 08018
Tel.: 619 63 39 88. Fax: 93 231 74 60
e-mail: barcelonacap@otis.com
San Andrs
C/ Tnger, 53-55 - 08018
Tel.: 609 84 18 83 - Fax: 93 274 33 19
e-mail: sanandres@otis.com
Sarri
C/ Tnger, 53-55 - 08018
Tel.: 619 30 85 89. Fax: 93 204 61 71
e-mail: sarria@otis.com
Matar
Cooperativa, 73 - 08302
Tel.: 93 757 86 88 - Fax: 93 757 80 32
e-mail: mataro@otis.com
Barcelona Exterior
Sabadell
Doctor Balari, 189 - 08203
Tels.: 686 84 09 34 - 686 84 14 34
Fax: 93 723 74 58
e-mail: barcelonaext@otis.com
Tarragona
Josep Pl, 1
(La Vall de LArrabassada) - 43006
Tel.: 686 84 16 85
Fax: 977 29 11 13
e-mail: tarragona@otis.com
Villafranca
Josep Pl, 1
(La Vall de LArrabassada) - 43006
Tel.: 609 34 63 80. Fax 977 29 11 13
Lrida
Ramn Llull, 5 bajos - 25008
Tel.: 686 84 03 20 - Fax: 973 22 16 40
e-mail: lerida@otis.com
Gerona
C/ Narcs Monturiol, 1 - P.I. Montfulla
(Bescano) - 17162
Tel.: 686 84 14 28. Fax: 972 23 50 51
e-mail: girona@otis.com
Lloret de Mar
C/ Narcs Monturiol, 1 - P.I. Montfulla
(Bescano) - 17162
Tel.: 639 37 03 95
Baleares (Palma de Mallorca)
San Vicente de Paul, 22 - 07010
Tel.: 628 47 99 24. Fax: 971 75 40 66
e-mail: baleares@otis.com
Ibiza
Toni Sandich, 4 bajo C - 07800
Tel.: 689 28 30 39. Fax: 971 19 39 26
e-mail: ibiza@otis.com
Mallorca
Pons y Gallarza, 3 A bajo - 07004
Tel.: 971 75 21 97 - 971 29 41 12 Fax:
971 75 47 57
e-mail: eguren.palma@egurenkone.com
Menorca
Miguel de Veri, 51. Mahn - 07703
Tel.: 689 28 30 61. Fax: 971 36 18 87
e-mail: menorca@otis.com
Manacor
Av. del Parc, 46-A - 07500
Tel.: 689 28 30 84. Fax: 971 82 33 43
e-mail: manacor@otis.com
Andraitx
C/ San Vicente de Paul, 22 - 07010
Tel.: 689 28 30 52. Fax: 971 75 40 66
Barcelona
C/ Tnger, 53 - 08025
Tel.: 689 23 73 19 - Fax: 93 207 66 76
mail: eguren.barcelona@egurenkone.com
COMUNIDAD VALENCIANA
Valencia
C/ Ro Segre, 29 - 46025
Tel.: 639 26 36 01. Fax: 96 366 41 03
e-mail: valencia@otis.com
Cornell
Bellaterra, 18-20- 08940
Tel.: 93 377 39 21 - Fax: 93 377 24 02
e-mail: cornella@otis.com
Gandia
C/ Tossal, 13 bajo - 46701
Tel.: 689 57 65 92. Fax: 96 296 68 01
e-mail: gandia@otis.com
105
Cullera
Rambla San Isidro, 5 - 46400
Tel.: 638 93 63 31. Fax: 96 173 06 96
e-mail: cullera@otis.com
Villagarca de Arosa
San Antonio, 30 - 36002
Tel.: 650 59 24 27. Fax: 986 50 30 36
e-mail: villagarcia@otis.com
Legans
C/ Argentina, 13 - 28918
Tel.: 606 05 73 48. Fax: 91 688 24 01
e-mail: leganes@otis.com
Onteniente
Artal de Forcs, 5 - 46870
Tel.: 682 77 01 01. Fax: 96 238 89 99
e-mail: onteniente@otis.com
Orense
San Francisco Blanco, 6 - 32001
Tels.: 988 37 10 24 - 988 21 10 90
Fax: 988 21 81 70
e-mail: ourense@otis.com
Alcal de Henares
Fuentenovilla, 1 - 28806
Tel.: 639 95 06 17. Fax: 91 888 43 61
e-mail: alcalahenares@otis.com
Paterna
C/ Ro Segre, 29 bajo - 46025
Tel.: 618 83 52 09. Fax: 96 366 41 03
e-mail: paterna@otis.com
Sagunto
Isla de Crcega, 58 bajo - 46520
Tel.: 676 31 13 23 - Fax: 96 267 69 49
e-mail: sagunto@otis.com
Castelln
C/ Jos m Guinot Galn, 5
3 (Edif. Gumbau Center) - 12003
Tel.: 636 76 48 34. Fax: 96 423 90 60
e-mail: castellon@otis.com
La Corua
Gutemberg, 42 C - 15008
Tel.: 648 47 19 88. Fax: 981 25 77 08
e-mail: acoruna@otis.com
Carballo
Villa de Ordenes, 33 - 15100
Tel.: 619 75 71 43. Fax: 981 75 73 01
Alicante
Churruca, 8. Bajo - 03003
Tel.: 680 91 20 73
Fax: 96 512 59 38
e-mail: alicante@otis.com
Lugo
Plaza de la Libertad, 14-16 bajo
27002
Tel.: 618 67 93 95. Fax: 982 22 38 75
e-mail: lugo@otis.com
Ribadeo
Pintor Fierro, 19-21 bajo - 27700
Tel.: 606 43 22 73. Fax: 982 12 99 83
El Ferrol
Bertn, 9-11 - 15404
Tel.: 616 51 29 80. Fax: 981 37 24 97
e-mail: elferrol@otis.com
Santiago
Snchez Freire, 67 bajo - 15706
Tel.: 618 05 31 30. Fax: 981 52 56 82
e-mail: santiago@otis.com
Boiro
C/ Salvador Allende, 6 - 15930
Tel.: 686 75 98 79. Fax: 981 84 98 84
Oviedo
C/ Monte Cerrau, 28 (local) - 33006
Tel.: 619 99 04 15. Fax: 985 25 98 64
e-mail: oviedo@otis.com
Playa de San Juan

Churruca, 8. Bajo - 03003
Tel.: 650 56 56 24. Fax: 96 515 39 42
e-mail: playasanjuan@otis.com
Gijn
Feijoo, 38 Bajo - 33204
Tel.: 689 16 93 09 - Fax: 985 36 31 22
e-mail: gijon@otis.com
Elche
Jos Snchez Sez, 31 Local 9 - 03202
Tel.: 650 56 66 25. Fax: 96 545 26 44
e-mail: elche@otis.com
Avils
Fruela, 3 bajo (Versalles) - 33402
Tel.: 689 16 93 28. Fax: 985 54 47 22
e-mail: aviles@otis.com
Benidorm
Lrida, 5 Bajo. Edif. Paraso 10 - 03503
Tel.: 650 56 67 36. Fax: 96 586 27 52
e-mail: benidorm@otis.com
MADRID
Madrid
C/ Las Mercedes, 13 - 28020
Tel.: 91 343 55 30.
Fax: 91 343 55 85 - 91 567 89 68
e-mail: madrid@otis.com
Benicarl
Cristo del Mar, 145 - 12580
Tel.: 669 63 07 14. Fax: 96 447 30 03
e-mail: benicarlo@otis.com
Castelln Norte
Avda. Columbretes, 7 Local 1B - 12594
Tel.: 669 63 05 81. Fax: 96 431 13 03
e-mail: oropesa@otis.com
Vall de Ux
Mossen Ricardo Miralles, 14 bajo12600
Tel.: 669 63 02 62. Fax 964 66 79 22
e-mail: vallduxo@otis.com
Elda
Avda. Reina Sofa, 7 bajo - 03610
Tel.: 650 56 65 84. Fax: 96 537 04 28
e-mail: elda@otis.com
Torrevieja
Portalitos, 19 - 03185
Tel.: 650 56 52 03. Fax: 96 570 33 18
e-mail: torrevieja@otis.com
Alcoy
Isabel II, 10 - 03802
Tel.: 650 56 58 38. Fax: 96 552 46 44
e-mail: alcoy@otis.com
Denia
Ronda Murallas, 15 - 03700
Tel.: 650 56 66 08. Fax: 96 578 76 50
e-mail: denia@otis.com
GALICIA Y ASTURIAS
Vigo
Couto, 19 bajo - 36203
Tel.: 606 55 09 55. Fax: 986 42 31 14
e-mail: vigo@otis.com
Pontevedra
San Antonio, 30 - 36002
Tel.: 650 59 24 65. Fax: 986 86 44 16
e-mail: pontevedra@otis.com
Madrid Sur
C/ Academia, 10 - 1 - 28014
Tel.: 639 94 99 12. Fax: 91 517 88 16
e-mail: madridsur@otis.com
Ciudad Lineal
C/ Golfo de Salnica, 73 5 planta
28033
Tel.: 639 94 99 55. Fax: 91 303 61 58
e-mail: ciudadlineal@otis.com
Retiro
C/ Academia, 10 - 1 - 28014
Tel.: 626 92 60 28. Fax: 91 562 56 94
e-mail: retiro@otis.com
Castellana
C/ Las Mercedes, 13 1 planta - 28020
Tel.: 91 343 55 35. Fax: 91 343 55 85
e-mail: castellana@otis.com
Fuencarral
C/ Las Mercedes, 13 2 planta - 28020
Tel.: 91 731 06 00. Fax: 91 567 89 68
e-mail: fuencarral@otis.com
Majadahonda
Doctor Bastos, 7 - 28220
Tel.: 639 95 03 52. Fax: 91 634 48 95
e-mail: majadahonda@otis.com
Boadilla del Monte

Avda. Isabel de Farnesio, 25
Local 5 - 28660
Tel.: 683 66 72 12 - Fax: 91 632 26 70
e-mail: boadilla@otis.com
PAIS VASCO, NAVARRA Y
CANTABRIA
Bilbao
Amadeo Deprit Lasa, 1-3 - 48006
Tel.: 626 50 64 12. Fax: 944 73 08 35
e-mail: bilbao@otis.com
Bilbao
Carmelo Echegaray, 13 - 48100 Mungia
Tel.: 682 41 95 76 - Fax: 946 74 19 98
e-mail: eguren.bilbao@egurenkone.com
Uribe Costa
C/ Ganeta, 6 - 48930
Tel.: 618 53 02 92 - 650 55 78 85
Fax: 944 31 69 63
e-mail: lasarenas@otis.com
Amorebieta
Ixerango, 1 - Amorebieta
Etxano - 48340
Tel.: 650 55 82 13 - Fax: 946 30 16 83
e-mail: amorebieta@otis.com
Baracaldo
C/ Ganeta, 6 - 48930
Tel.: 650 55 79 98 - Fax: 944 31 69 63
Bilbao (Deusto)
Amadeo Deprit Lasa, 1-3 - 48006
Tel.: 629 38 69 66 - Fax 944 59 72 99
e-mail: deusto@otis.com
Vitoria
Madre Teresa de Calcuta, 3-5 - 01008
Tel.: 650 55 88 14. Fax: 945 12 04 11
e-mail: vitoria@otis.com
San Sebastian (Guipzcoa)
Pza. Azkoitia, s/n - 20011
Tel.: 650 55 89 83. Fax: 943 47 01 13
e-mail: sansebastian@otis.com
Irn
Lekaenea, 28 - local 3 - 20301
Tel.: 660 67 86 91. Fax: 943 61 74 13
e-mail: irun@otis.com
Bergara
Pz. Frainskozuri, 5 bajo - 20570
Tel.: 660 71 23 82 - Fax: 943 76 09 39
e-mail: bergara@otis.com
Laredo
C/ Emperador, 27 - 39770
Tel.: 689 16 93 72
Santander
C/ Macas Picavea, 14 Bajos - 39003
Tel.: 689 16 93 29 - Fax: 942 36 12 24
e-mail: santander@otis.com
Torrelavega
Barrio del Cerezo 13 B - 39300
Tel.: 689 16 93 58 - Fax: 942 80 43 34
e-mail: torrelavega@otis.com
Pamplona
C/ G, nave D - 18 bis
P.I. Los Agustinos - Orcoyen - 31160
Tel.: 639 94 48 87 . Fax: 948 15 17 77
e-mail: pamplona@otis.com
REGIN DE MURCIA
Murcia Centro
Ronda de Garay, 12 bajo - 30003
Tel.: 669 91 45 29. Fax: 968 34 11 21
e-mail: murcia@otis.com
Murcia Norte
Tel.: 650 70 35 11. Fax: 968 38 68 95
Murcia Sur
Tel.: 650 70 19 99. Fax: 968 34 58 47
Delegao Aveiro
Rua Cnego Maio, 35-R/C Esq
So Bernardo
3810-089 Aveiro
Tel.: 23 434 39 60
Fax: 23 434 39 59
Delegao Coimbra
Rua Entre Vinhas, 18 Eiras
3020-171 Coimbra
Tel.: 23 943 30 06
Fax: 23 943 09 91
Cartagena
Alfonso X el Sabio, 27 - 30204
Tel.: 650 65 44 50. Fax: 968 51 19 12
e-mail: cartagena@otis.com
Delegao Leiria
Rua dos Costas, Lote 11 - Loja A
2415-567 Leiria
Tel.: 24 483 43 06
Fax: 24 483 61 21
Mar Menor
Ctra. de San Pedro Pinatar, 9 bajo
esq. calle Tercia (San Javier) - 30730
Tel.: 650 65 44 46. Fax: 968 19 05 60
e-mail: mar.menor@otis.com
Delegao Setbal
Rua Francisco S Carneiro, 17A
2900-379 Setbal
Tel.: 26 570 84 90
Fax: 26 577 21 31
Lorca
Jernimo Santa Fe, 7-1A esc.B 30800
Tel.: 650 65 45 20. Fax: 968 44 36 59
e-mail: lorca@otis.com
Yecla
Rambla, 43 bajo - 30510
Tel.: 650 70 16 60. Fax: 968 79 31 51
e-mail: yecla@otis.com
Regional Branch offices

Portugal
Otis Elevadores LDA
Sede
Estrada de Mem Martins, 7
2725-109 Mem Martins
Tel.: 21 926 82 00
Fax: 21 926 82 09
Delegao Albufeira
Vale do Paraso, 275-Z, Ferreiras
8200-567 Albufeira
Tel.: 28 957 00 00
Fax: 28 958 91 87
Delegao Madeira
Massel Otis, Lda.
Travessa Piornais
Edifcio Monumental Parque II, Loja A
9000-246 Funchal
Tel.: 29 174 47 35
Fax: 29 174 45 28
Delegao Aores
Rua Antnio Gaspar Read Henriques, 17
Apartado 1486
9500-184 Ponta Delgada
Tel.: 29 662 90 86
Fax: 29 628 54 33
Morocco
Casablanca
95, Bd. Al Massira Al Khadra
Casablanca
Tel: 05 22 98 93 05. Fax 05 22 98 34 10
Rabat
Sect. 13 Bloc D. Rue Achih, 4
Hay Riad - Rabat
Tels.: 05 37 57 32/33 - 05 37 57 36/37
Fax 05 37 57 05 42
Tanger
6, Rsidence Loudaya
eme
tage
Av. Youssef Ibn Tachfine, 2
Appt. 8 - Tanger
Tel: 05 39 32 39 99. Fax 05 39 34 29 91
Agadir
Rue de lHotel de Ville Rsidence Taffat
Agadir
Tel: 05 28 84 25 59. Fax 05 28 84 16 23
Fs
Residence Samia Magasin, 2
n 4 lot Bel Air, Abdessalam
AMER-Champs de course - Fes
Tel: 05 35 62 26 91. Fax 05 35 62 26 91
Oujda
24, Lotissement Benmimoune
Route Sidi Yahia
eme- Oujda 60000
Imm. Kada 4
tage - Oujda
Tel: 05 36 54 10 13. Fax 05 36 54 10 13
Marrakech
Angle Av. Yacoub El Mansour & Khalid
Ibn El Oualid
Residence
Yacoub El Mansour Entre A
er
1 tage Appt n 2 - Marrakech
Tels.: 05 24 43 43 07/43 85 78
Fax 05 24 43 85 78
Magasin
245. Bd. Emile Zola - Casablanca
Tel: 05 22 40 07 75. Fax 05 22 40 07 75
Delegaciones
Delegao Braga
Rua Cnego Manuel Aguiar Barreiros,
92
4700-372 Braga
Tel.: 25 320 87 00
Fax: 25 321 87 66
Delegao Porto/Vila Nova de Gaia
Rua Antnio Rodrigues da Rocha, 175
Mafamude
4400-025 Vila Nova de Gaia
Tel.: 22 607 91 45
Fax: 22 600 78 74
Delegao Viseu
Rua Joaquim Guerra
Oliveira Alfaia, Lote 112
Loja A, Jugueiros
3500-454 Viseu
Tel.: 23 242 66 10
Fax: 23 241 53 23
107
EXHIBIT I
ANNUAL CORPORATE GOVERNANCE REPORT
FOR LISTED COMPANIES
DETAILS IDENTIFYING ISSUER
DATE OF FISCAL YEAR END
TAX IDENTIFICATION CODE
CORPORATE NAME
ZARDOYA OTIS S.A

REGISTERED ADDRESS
CL GOLFO DE SALNICA 73
Nov. 30, 2014
A28011153
ANNUAL CORPORATE GOVERNANCE REPORT

FOR LISTED CORPORATIONS
A OWNERSHIP STRUCTURE
A.1 Complete the following table on the companys share capital:
Date of latest
modification
Capital social ()
July 15, 2014
43,497,070.20
Number of shares
Number of voting rights
434,970,702
434,970,702
State whether there are different classes of shares to which different rights are associated:
Yes
No X
A.2 Details of the direct and/or indirect owners of significant shareholdings in your company at the year-end
date, excluding Board Members:
Name or corporate name of shareholder
Number of direct Number of indirect

voting rights
voting rights
0
UNITED TECHNOLOGIES CORPORATION (UTC)
% of total voting
rights
215,862,730
49,63%
Name or corporate name of the indirect owner of the Through: Name or corporate name of the direct owner Number of voting
shareholding
of the shareholding
rights
UNITED TECHNOLOGIES HOLDINGS, S.A.S.
215.862.730
State the most significant movements in the shareholder structure that took place during the F.Y.:
A.3 Complete the following charts on the members of the Board of Directors of the company who hold
voting rights corresponding to shares therein::
Name or corporate name of director
Number of direct Number of indirect % of total voting

voting rights
voting rights
rights
MR BERNARDO CALLEJA FERNANDEZ
1120
0.00%
MR PIERRE DEJOUX
10
0.00%
MR MARK GEORGE
0.00%
MR ALBERTO ZARDOYA ARANA

MR MARIO ABAJO GARCIA
EURO-SYNS S.A.
109
0.00%
704,598
0.16%
45,084,774
4,127,738
11.31%
Name or corporate name of the indirect owner of the Through: Name or corporate name of the direct owner Number of voting
rights
shareholding
of the shareholding
EURO-SYNS S.A.
% of total voting rights held by the Board of Directors
CENON INVESTMENTS S.L.
4,127,738
11.31%
Complete the following charts on the members of the Board of Directors of the company who hold
rights over company shares:
2
A.4 State, if applicable, any family, commercial, contractual or corporate relationships that exist between
the owners of significant shareholdings, to the extent that these are known to the company, unless
they are of little relevance or are derived from ordinary business or trading:
Nombre o denominacin social

relacionados
Tipo de relacin
Breve descripcin
Euro-Syns, S.A.
Familiar
Este consejero es una sociedad

controlada por miembros de la familia
Zardoya.
A.5 State, if applicable, any commercial, contractual or corporate relationships that exist between the
owners of significant shareholdings and the company and/or its group, unless they are of little
relevance or are derived from ordinary business or trading:
relacionados
United Technologies Holdings, S.A.S.
Tipo de relacin
Breve descripcin
Comercial
Contractual
Societaria
A 30 de noviembre de 2014, United

Technologies Corporation (UTC) es
titular del 100% de las acciones de
Otis Elevator Company y del
49.6269% de las acciones de
Zardoya Otis S.A. a travs de United
Technologies
Holdings,
S.A.S.
Zardoya Otis, S.A. tiene relaciones
comerciales y contractuales con Otis
Elevator Company y con United
Technologies Corporation (UTC) (ver
tambin el apartado A.6 siguiente).
Type of relationship: Commercial

Brief description:
As of November 30, 2014, United Technologies Corporation (UTC) holds 100% shares of Otis
Elevator Co. and 50.01% of Zardoya Otis, S.A.. through United Technologies Holdings S.A.S.
Zardoya Otis S.A. has commercial and contractual relations with Otis Elevator Company and
United Technologies Corporation (UTC).
A.6 State whether any paracorporate (shareholders) agreements affecting the Company pursuant to the
provisions of articles 530 and 531 of the Capital Companies Law] have been reported to the Company.
If so, briefly describe them and list the shareholders bound by the agreement:
Yes X
No
Parties to shareholders agreement

EURO-SYNS S.A.
UNITED TECHNOLOGIES HOLDINGS, S.A.S.
Percentage of share capital affected: 2.10%

Brief description of agreement:
As notified by Zardoya Otis, S.A. on January 30, 2013 as a relevant fact (number 181717), on August
3, 2012, Euro Syns, S.A. and United Technologies Holding, S.A.S. signed a syndication agreement
whereby Euro Syns, S.A. agreed to syndicate 8,458,074 shares in Zardoya Otis, S.A., representing
approximately 2.103% of its share capital (after the capital increase approved by the Extraordinary
General Shareholders Meeting held on January 30, 2013).
Said syndication agreement was signed in the interests of the transaction to acquire Grupo
Ascensores ENOR, S.A., in order for UTH to be the holder of more than 50% of the voting rights in
Zardoya Otis, S.A. at all times, thus allowing the UTC Group to continue to consolidate Zardoya Otis,
S.A. after the capital increase approved by the Companys Extraordinary General Shareholders
meeting held on January 30, 2013.
As further clarification, we add that, although the syndication agreement remained in force at the end
of the 2014 financial year, it has concluded on the date of issue of this report.
As provided in Clause 3 of the syndication agreement, said agreement was to end on the date on
which UTH became the owner of shares representing 50.01% or more of the share capital of Zardoya
Otis, S.A. UTH became the holder of shares representing 50.01% of the share capital of Zardoya Otis,
S.A. on January 9, 2015. The Company and the National Stock Market Commission were duly
informed of this situation by UTH in the pertinent notification of significant shareholding and notification
of relevant fact (number 216904), respectively.
State whether the company is aware of the existence of any actions that have been arranged between
its shareholders. If S, briefly describe them:
Yes
No X
In the event that there was any change or breach of said agreements or arranged actions during the
F.Y., state this expressly.
A.7 State whether there exists any natural or legal person that exercises or can exercise control over the
company pursuant to article 4 of the Stock Market Act. If so, identify them:
Yes X
No

Comments
At November 30, 2014, it is the indirect owner (through the French company United Technologies Holdings S.A.) of 50.01 % of the
shares of Zardoya Otis, S.A.
A.8 Complete the following charts on the companys treasury stock:

At year-end date:
Number of direct shares
Number of indirect shares (*)
11,103
% of total capital
0
0.00%
(*) Through:
Give details of any significant variations, pursuant to the provisions of Royal Decree 1362/2007, that
took place in the F.Y.:
A.9 Give details of the conditions and/or periods of the authorization(s) provided by the General Meeting of
Shareholders to the Board of Directors to issue, repurchase or transfer treasury stock:
The Ordinary General Shareholders Meeting of Zardoya Otis, S.A. held on May 26, 20134unanimously approved the proposal to
authorize the Board of Directors to, without consulting the General Shareholders Meeting beforehand, acquire, directly or indirectly,
shares in Zardoya Otis, S.A. up to the maximum percentage of 10% of the share capital and for the maximum period of five years as from
the date on which the aforementioned Ordinary General Shareholders Meeting was held. The acquisition price of said shares may not be
lower than 2 euros per share or higher than 25 euros per share and the Board is expressly authorized to set aside the reserves required
under article 148 of the Capital Companies Law.
In addition, the Extraordinary General Shareholders Meeting of Zardoya Otis, S.A. held on January 30, 2013 unanimously approved to
authorize the Board of Directors to, pursuant to the provisions of article 149 of the current Capital Companies Law, either directly or
through any group companies, accept its own shares as a pledge or any other type of guarantee, within the limits and meeting the
same requirements as are applicable to the acquisition thereof.
Specifically:
The maximum number of shares to be accepted as pledges shall not exceed 10% of the Companys share capital.
The shares accepted as pledges shall be free of all charges and encumbrances, fully paid up and not attached to compliance with any
obligation the beneficiary of which is not the Company.
Term of the authorization: the authorization shall be in force for the maximum period allowed by Law at any given moment, as from the
date of this Extraordinary General Shareholders Meeting.
When carrying out these transactions, the rules on the subject contained in the Companys Internal Code of Conduct shall likewise be
met.
This authorization does not amend but rather- complements the authorization granted as per the first paragraph above.
A.10 State whether there is any restriction on the transferability of shares and/or any restrictions on voting
rights. In particular, state the existence of any kind of restrictions that might hinder taking control of the
company by acquiring shares therein in the market.
Yes
No X
A.11 State whether the General Shareholders Meeting has approved to adoption of breakthrough
measures in the event of a public tender offer pursuant to the provisions of Law 6/2007.
Yes
No X
If applicable, describe the approved measures and the terms on which the restrictions will become
ineffective.
A.12 State whether the company has issued securities that are not traded on a regulated Community market.
Yes
No X
If applicable, state the different classes of shares and, for each class of shares, the rights and
obligations it confers.
5
B GENERAL MEETING
B.1 State and, if applicable, describe whether there are any differences from the system of minimums
provided for in the Capital Companies Law regarding the quorum required to constitute a General
Meeting.
Yes X
No
Quorum % different from that established

as a general rule in art. 193 Capital
Companies Law
Quorum % different from that established in art.

194 Capital Companies Law for the special cases
of art. 194 Capital Comp. Law
Quorum required on 1st

call
60.00%
50.00%
Quorum required on 2nd

call
66.66%
50.00%
Describe the differences

The qualified quorums mentioned in the above chart are required.
B.2 State and, if applicable, describe whether the system for adopting corporate resolutions differs from the
system provided for in the Capital Companies Law.
Yes
No X
Describe the differences from the system provided for in the Capital Companies Law.
B.3 State the rules applicable to amending the corporate By-Laws. In particular, state the majorities
required to amend the By-Laws and, if applicable, the rules that are in place to protect shareholder
rights when the By-Laws are amended.
To amend the Companys By-Laws, the system set forth in article 285 onwards of the Capital Companies Law will be applied.
Notwithstanding the provisions of the preceding paragraph, according to article 14 of the Companys By-laws, in order for a General
Meeting (Ordinary or Extraordinary) to validly resolve to increase or decrease the capital or make any other amendment to the By-Laws,
issue debentures, eliminate the limitation on the preferential right of acquisition of new shares, convert, merge or spin off the Company
or globally transfer its assets and liabilities, move its registered office abroad, or any other amendment for which a qualified majority is
legally required, it will be necessary, on the first call, for shareholders owning at least two thirds of the subscribed capital with voting
rights to be present or represented. On the second call, it will be sufficient for 50% of said capital to be present or represented.
Additionally, in accordance with article 15 of the Companys By-laws, a separate vote will be taken on each one of the items on the
agenda and on those matters which, although they form part of the same item on the agenda, are substantially independent, in order for
the shareholders to exercise their voting preferences separately. In particular, in the event of amendments to the Companys By-laws,
separate votes will be taken on each article or group of articles that is substantially independent.
Resolutions concerning amendment of the Companys By-laws will be adopted by a majority of the capital present or represented at
the General Shareholders Meeting.
B.4 State the attendance figures for the General Meetings held in the financial year to which this report
refers and in the preceding financial year:
Attendance figures
Date of General
Meeting
% physically present
% represented
% distance votes
Electronic vote
Total
Other
30/01/2013
64.69%
7.86%
0.00%
0.00%
72.55%
27/05/2013
64.62%
6.77%
0.00%
0.00%
71.39%
26/05/2014
61.74%
8.60%
0.00%
0.00%
70.34%
B.5 State whether the By-Laws contain a restriction establishing the minimum number of shares required to
attend the General Meeting:
Yes
No X
B.6 State whether it has been decided that certain decisions that involve a structural modification of the
company (subsidiarization, purchase or sale of essential operating assets, operations equivalent to
winding up the company, ) should be submitted to the approval of the General Shareholders
Meeting even though mercantile legislation does not expressly require this:
Yes X
No
B.7 State the address and way to access the corporate governance information on the companys website,
as well as other information on General Meetings that must be made available to shareholders through
the companys website:
The website of Zardoya Otis, S.A. is (www.otis.com/site/es-esl/Pages/InformacionparaAccionistaseInversores.aspx) which likewise
contains a section on Corporate Governance. Among other documents, the Annual Corporate Governance Report for 2013, published
in March 2014, is included.
The 2014 Annual Corporate Governance Report will be duly published on the corporate website in March 2015.
C STRUCTURE OF THE COMPANYS GOVERNING BODIES

C.1 Board of Directors
C.1.1 Maximum and minimum number of Directors provided for in the By-Laws:
Maximum number of Directors
15
Minimum number of Directors
C.1.2 Complete the following chart with the members of the Board:
of Director
Representative
Position on the
Board
Date first
Date latest
appointment appointment
Election procedure
MR MARIO ABAJO
GARCIA
CHAIRMAN
05/31/1985
06/23/2011
RESOLUT. GENERAL
SHAREHOLDERS
MEETING
MR JOSE MARIA LOIZAGA

VIGURI
DEPUTY
CHAIRMAN
02/23/1973
05/27/2013
RESOLUT. GENERAL
SHAREHOLDERS
MEETING
MR BERNARDO
CALLEJA FERNANDEZ
DIRECTOR & CEO
02/28/2012
05/24/2012
RESOLUT. GENERAL
SHAREHOLDERS
MEETING
MR PIERRE DEJOUX
DIRECTOR
01/26/2012
05/24/2012
RESOLUT. GENERAL
SHAREHOLDERS
MEETING
MR MARK GEORGE
DIRECTOR
02/26/2014
05/26/2014
RESOLUT. GENERAL
SHAREHOLDERS
MEETING
MR ALBERTO
ZARDOYA ARANA
DIRECTOR
02/26/2013
05/27/2013
RESOLUT. GENERAL
SHAREHOLDERS
MEETING
Representative

of Director
Date first
Date latest
appointment appointment
DIRECTOR
05/26/2014
05/26/2014
RESOLUT. GENERAL
SHAREHOLDERS
MEETING
MS MARIA LUISA
ZARDOYA ARANA
DIRECTOR
05/31/1996
06/23/2011
RESOLUT. GENERAL
SHAREHOLDERS
MEETING
MRS.MURIEL
MAKHARINE
DIRECTOR
06/30/1984
06/23/2011
RESOLUT. GENERAL
SHAREHOLDERS
MEETING
MR PHILIPPE DELPECH
EURO-SYNS S.A.
Election procedure
Position on the
Board
OTIS ELEVATOR
COMPANY
Total number of directors
State any Directors who left the Board during the reporting period:
del consejero
Condicin consejero en el
momento del cese
Fecha de baja
DON ANGELO MESSINA
Consejero Dominical
26-02-2014
DON JOHAN BILL
Representante persona fsica de

Otis Elevator Company (Consejero
Dominical)
17-02-2014
DON LINDSAY HARVEY
Consejero Dominical
8-04-2014
C.1.3 Complete the following charts on the members of the Board and their classification:
EXECUTIVE DIRECTORS
Name or corporate name of Director
MR BERNARDO CALLEJA
FERNANDEZ
Commission that reported on his/her Position in the companys organization

appointment
chart
NOMINATING COMMISSION
CEO
Total number of executive directors
11.11%
Total % of the Board
EXTERNAL PROPRIETARY DIRECTORS

Commission that reported on his/her

appointment
Name or corporate name of

significant shareholder
represented or that
proposed his/her
appointment
MR PIERRE DEJOUX
UNITED TECHNOLOGIES
HOLDINGS, S.A.S.
MR MARK GEORGE
UNITED TECHNOLOGIES
HOLDINGS, S.A.S.
MR ALBERTO ZARDOYA ARANA
MR PHILIPPE DELPECH
EURO-SYNS S.A.
OTIS ELEVATOR COMPANY
EURO-SYNS S.A.
UNITED TECHNOLOGIES
HOLDINGS, S.A.S.
EURO-SYNS S.A.
UNITED TECHNOLOGIES
HOLDINGS, S.A.S.
8
Total number of proprietary directors
66.67%
INDEPENDENT EXTERNAL DIRECTORS

MR JOSE MARIA LOIZAGA VIGURI
Profile:
Deputy Chairman. Appointed at the proposal of the Nominating Commission.
Total number of independent Directors
11,11%
State whether any Director classified as independent receives from the company or its group any
amount or benefit for an item other than director remuneration or maintains or has maintained in
the last financial year a business relationship with the company or any company belonging to its
group, either in his/her own name or as a significant shareholder, director or member of senior
management of an entity that maintains or has maintained such a relationship:
NO
If applicable, provide a statement explaining the Boards reasons for considering that said
Director can perform his/her functions as an independent Director.
OTHER EXTERNAL DIRECTORS
Commission that reported on or proposed his/her

appointment
Total number of other external directors

11,11%
Give details of the reasons for which they cannot be deemed to represent a shareholding or be
independent and of their ties with the company, its management and/or its shareholders.
Name or corporate name of Director:

Company, member of management or shareholder to which
he/she is related:
ZARDOYA OTIS, S.A.
Reasons:
Mr Abajo meets all the requirements of art. 5 of the Board of Directors Regulations and section III, No. 5
of the Unified Code of Good Governance to be considered an independent member of the Board, except
letter a), since he was an Executive Director less than five years ago.
State any variations in the classification of each Director that may have taken place during the
period:
C.1.4 Complete the following chart with information on the number of women Directors over the last
4 financial years and the classification of said women Directors:
190
Number of women Directors
% of total Board members of each type
F. Year
2013
F. Year
2012
F. Year
2011
F. Year
2010
F. Year
2013
F. Year
2012
F. Year
2011
F. Year
2010
Executive
0.00%
0.00%
0.00%
0.00%
Proprietary
0.00%
0.00%
0.00%
0.00%
Independent
0.00%
0.00%
0.00%
0.00%
Other external
0.00%
0.00%
0.00%
0.00%
Total:
0.00%
0.00%
0.00%
0.00%
C.1.5 Explain any measures that have been adopted to try to include a number of women on the
Board of Directors sufficient to allow a balanced presence of men and women:
Explanation of the measures
At the 2014 year end, to which this report refers, Zardoya Otis, S.A. had a small Board of Directors. Of its 9 members, 6 are
proprietary directors, one is an executive director, one is classified as other external directors (recommendation 11 of the
Unified Code of Good Governance) and one is classified as independent. At present, Mrs Mara Luisa Zardoya Arana is the
personal representative of the director Euro-Syns, S.A. and Mrs Muriel Makharine is the personal representative of the
Director Otis Elevator Company.
In its policy for choosing directors, Zardoya Otis, S.A. applies processes intended to avoid any discrimination that might limit
the access of women to posts on the Board of Directors.
In this respect, articles 5 and 12 B) 1 of the Board of Directors Regulations require that this body should ensure, within its
competencies, that the choice of director candidates should include people who, in addition to meeting the legal
requirements and those stipulated in the By-Laws for the position, possess the appropriate knowledge, prestige and
experience to perform the functions that they are appointed to perform. And this is irrespective of their sex.
Likewise, article 12 B) 2 e) of the Board of Directors Regulations states that one of the functions of the Nominating
Committee is to ensure that, when new vacancies arise or new Directors are appointed, the selection procedures are not
implicitly biased in any way that might imply some kind of discrimination and to report to the Board on gender diversity
issues.
C.1.6 Explain any measures that the Nominating Commission has established to ensure that
selection processes are free from any implied bias hindering the selection of women directors
and that the company deliberately seeks women with the appropriate professional profile and
includes them among the potential candidates:
Explanation of the measures
See point C.1.5 above.
In the director selection processes that have taken place, the Nominating Commission, following the principles
established in the Board of Directors Regulations, has ensured that there is no implicit bias that hinders the access of
women directors to the vacant positions and has evaluated the skills, knowledge and experience of all the candidates
in accordance with the needs of the governing bodies at any given moment, valuing the commitment that is considered
necessary in order to perform their task, irrespective of their sex.
When, in spite of any measures that have been adopted, the number of women directors is
scant or nil, explain the reasons that justify this:
Explanation of the reasons
See preceding section.
C.1.7 Explain how owners of significant holdings are represented on the Board:
As stated in points A2 and A3 above, the two principle direct owners of significant shareholders were United Technologies
Holdings, S.A.S. (UTH) and Euro-Syns, S.A.
At November 30, 2014, United Technologies Holdings, S.A.S. (UTH) and Euro-Syns, S.A. were represented on the Board
of Directors as follows:
- Euro-Syns, S.A. has been a Director since May 31, 1996 and was most recently re-elected at the Ordinary General
Shareholders Meeting held on May 23, 2011.
- Otis Elevator Company has been a Director since May 31, 1996 at the proposal of the significant shareholder United
Technologies Holdings, S.A.S. (UTH) and was most recently re-elected at the General Shareholders Meeting held on May
23, 2011.
- Mark George was co-opted to the Board of Directors on February 26, 2014 at the proposal of the significant shareholder
United Technologies Holdings, S.A.S. (UTH) and was ratified by the Ordinary General Shareholders Meeting held on May 26,
2014.
- Philippe Delpech is a Director since May 26, 2014 at the proposal of the significant shareholder United Technologies
Holdings, S.A.S. (UTH) .
- Pierre Dejoux was co-opted to the Board of Directors on January 26, 2012 at the proposal of the significant shareholder
United Technologies Holdings, S.A.S. (UTH) and was ratified by the Ordinary General Shareholders Meeting held on May 24,
2012.
- Alberto Zardoya Arana was co-opted to the Board of Directors on February 26, 2013 at the proposal of the significant
shareholder Euro-Syns, S.A. and was ratified by the Ordinary General Shareholders Meeting held on May 27, 2013.
C.1.8 Explain, if applicable, the reasons why proprietary directors have been appointed at the
proposal of shareholders whose shareholding interest is less than 5% of share capital.
State whether formal petitions for presence on the Board have been received from
shareholders whose shareholding interest is equal to or greater than that of others at whose
proposal proprietary directors have been appointed. If so, describe the reasons why such
petitions have not been satisfied.
Yes
No X
C.1.9 State whether any Director has withdrawn from his/her position before the expiration of his/her
term of office, whether the director has given reasons to the Board and by what means, and in the
event that he/she gave reasons in writing to the full Board, describe at least the reasons given by
the Director:
Nombre del consejero
Don Angelo Messina
Motivo del cese
N/A. Don Angelo Messina comunic al resto de consejeros su decisin de dimitir como miembro
del Consejo de Administracin de Zardoya Otis, S.A. y a su cargo de miembro del Comit de
Auditora en la reunin del pasado 26 de febrero de 2014.
Don Johan Bill (representante persona fsica de Otis Elevator Company)
Motivo del cese
Don Johan Bill comunic al resto de consejeros, mediante el envo de la correspondiente carta de
renuncia, su decisin de dimitir como representante persona fsica de Otis Elevator Company en
el Consejo de Administracin de Zardoya Otis, S.A. con efectos desde el da 17 de febrero de
2014. La dimisin se debe a procesos de reorganizacin interna del Grupo UTC.
Don Lindsay Harvey
Motivo del cese
N/A. Don Lindsay Harvey comunic al resto de consejeros su decisin de dimitir como miembro
del Consejo de Administracin de Zardoya Otis, S.A. y a su cargo de Presidente de la Comisin
de Nombramientos y miembro del Comit de Auditora en la reunin del pasado 8 de abril de
2014.
C.1.10 State the powers, if any, that are delegated to the Chief Executive Officer/s:
Name or corporate name of the Director:

Brief description:
The CEO holds all the powers that can be delegated in accordance with the law or By-Laws, with the
exception of the purchase/sale of real estate as well as the financial disbursement faculty, limited to joint
powers for 50 million euros per transaction
C.1.11 Identify, if applicable, the members of the Board who hold positions as Directors or managers
in other companies that form part of the group of the listed company::
Corporate name of group company
Position
OTIS ELEVADORES LDA.

(PORTUGAL)
DIRECTOR

(PORTUGAL)
DIRECTOR
MR BERNARDO CALLEJA
FERNANDEZ

(PORTUGAL)
MR BERNARDO CALLEJA
FERNANDEZ
OTIS MAROC S.A. [MOROCCO]
CHAIRMAN
MR BERNARDO CALLEJA
FERNANDEZ
GRUPO ASCENSORES ENOR, S.A.
CHAIRMAN
MR BERNARDO CALLEJA
FERNANDEZ
ACRESA-CARDELLACH S.L.
CHAIRMAN
MR BERNARDO CALLEJA
FERNANDEZ
ASCENSORES SERRA S.A.
DIRECTOR
MR BERNARDO CALLEJA
FERNANDEZ
MONTES TALLON S.A.
DIRECTOR
CHAIRMAN OF BOARD OF DIRECTORS
C.1.12 Identify, if applicable, the Directors of your company who are members of the Board of
Directors of other companies outside your group listed on official stock markets, when this has
been notified to the company:
Corporate name of group company
Position
ACTIVIDADES DE CONSTRUCCION
Y SERVICIOS. S.A. (ACS)
DIRECTOR
ACTIVIDADES DE CONSTRUCCION
Y SERVICIOS. S.A. (ACS)
EXECUTIVE COMMISSION DEPUTY

CHAIRMAN
CARTERA INDUSTRIAL REA. S.A.
CHAIRMAN
C.1.13 State and, if applicable, explain whether the Company has established rules regarding the
number of boards of which its directors may be members:
Yes X
No
Description of Rules
Article 19 of the Board of Directors Regulations expressly establishes the directors duty to devote the time and effort
necessary to perform their function efficiently.
C.1.14 State the companys general policies and strategies reserved for approval by the full Board:
Yes
The investment and financing policy
The definition of the structure of the group of companies
The corporate governance policy
The corporate social responsibility policy
The strategic or business plan, as well as management objectives and annual budgets
The policy regarding compensation and evaluation of performance of senior management
The risk control and management policy, as well as the periodic monitoring of the internal information and
control systems
The dividend policy, as well the treasury stock policy and, especially, the limits thereto
No
C.1.15 State the aggregated compensation of the Board of Directors:

Compensation of the Board of Directors (thousands of euros)
1,604
Aggregated amount of rights accumulated by the Directors in relation to

pensions (thousands of euros)
41
Aggregated compensation of the Board of Directors (thousands of euros)
1,645
C.1.16 Identify the members of senior management who are not also executive directors and state the
total compensation accrued in their favour during the F.Y.:
MR DOMINGOS EDMUNDO DA ASCENAO OLIVEIRA
GENERAL MANAGER
MR PHILIPE OLIVEIRA
Position
GENERAL MANAGER
GENERAL MANAGER
Total compensation of senior management (thousands of euros)
350
C.1.17 State, if applicable, the identity of the members of the Board who are also members of the
Boards of Directors of companies that hold significant shareholdings in the listed company
and/or companies belonging to its group:
director
Mario Abajo
Mark George
Pierre Dejoux
Bernardo Calleja Fernandez

Otis Elevator Company (New
Jersey)
Otis Elevator Company [Delaware,
USA]
Otis Elevator International, Inc.
[Delaware, USA]
OTIS Limited
Buga Otis Asansor Sanayi ve Ticaret
A.S. [Turqua]
Ascensores Serra S.A.
C. Veremis Otis S.A. [Grecia]
Otis Elevadores (Portugal)
Montes Tallon S.L.
Otis Servizi S.r.l.(Italia)
Grupo Ascensores Enor, S.A.
Mototraccin Electrica Latierro, S.A.
Otis Maroc, S.A. (Marruecos)
Philippe Delpech
Jos Mara Loizaga Viguri
Maria Luisa Zardoya Arana
(persona fsica representante
del consejero Euro-Syns, S.A.)
Acresa Cardellach, S.L.

Buga Otis Asansor Sanayi ve Ticaret
A.S. [Turqua]
Designation
Director
Director
Director
Director
Chairman
Director
Director
Director
Chairman
Director
Chairman
Chairman
Personal representative of Director
(Zardoya Otis S.A.)
Personal representative of Director
(Zardoya Otis S.A.)
Chairman
Vice Chairman
Director
Director
13
Explain, if applicable, any significant relationships, other than those mentioned in the
preceding caption, between the members of the Board of Directors and the significant
shareholders and/or companies belonging to their groups:
Name or corporate name of related Director:

Name or corporate name of related significant shareholder:
Description of relationship:
He is an executive of the United Technologies Corporation Group

MR PIERRE DEJOUX

MR MARK GEORGE


MR PHILIPPE DELPECH

EURO-SYNS S.A.
EURO-SYNS S.A.
Euro-Syns, S.A. is a company controlled by the Zardoya family

Description of relationship
It is a company controlled by United Technologies Corporation
C.1.18 State, if applicable, any modifications made to the Regulations of the Board of Directors during
the F.Y.
Yes
No X
C.1.19 State the procedures for appointment, re-election, evaluation and removal of Directors. Give
details of the competent bodies, the procedures to follow and the criteria to be employed in each
one of the procedures.
According to article 20 of the By-Laws, directors will be designated by voting pursuant to the rules established by law.
In this respect, it is not necessary to be a shareholder in order to be appointed as a director, except in the event of
provisional appointment made by the Board of Directors itself pursuant to the provisions of article 244 of the Capital
Companies Law.
In addition, article 13 of the Board of Directors Regulations states that Directors will be designated by the General Meeting
or, provisionally, by the Board of Directors, pursuant to the provisions of the Capital Companies Law and the By-Laws.
Thus, the Board of Directors (i) shall, within the scope of their respective competencies, ensure that the persons chosen as
candidates are persons with recognized competence and experience; (ii) establish a guidance program for new directors that
swiftly provides them with sufficient knowledge of the Company and its corporate governance rules; and (iii) likewise have
knowledge updating programs when the circumstances thus advise.
C.1.20 State whether the Board of Directors has evaluated its activity during the F.Y.:
Yes
No X
If applicable, explain the extent to which the self-evaluation has led to important changes in
its internal organization and the programs applicable to the activities:
C.1.21 State the circumstances in which Directors are obliged to resign:

Firstly, article 15 of the Board of Directors Regulations states that directors will cease to hold office when the term for which
they were appointed has elapsed or when the General Shareholders Meeting thus decides, using the attributions conferred
upon it by law or in the By-Laws.
Furthermore, in order to meet recommendations 30 and 32 of the Unified Code of Good Governance, article 15 of the Board
of Directors Regulations provides that directors must tender their resignation to the Board and, if the latter deems it
convenient, resign under any of the following circumstances:
(a) When they are affected by one of the cases of incompatibility or prohibition provided for by law;
(b) When they may damage the Companys prestige or reputation;
(c) When they are accused or prosecuted or when a ruling for opening an oral trial in ordinary proceedings or a conviction in
abridged proceedings is issued against them for a serious offence, in particular, one of the offences mentioned in article 213
of the Capital Companies Act;
(d) When they are seriously rebuked by the Audit Committee or for having failed to perform their duties as directors; or
(e) When an external proprietary director transfers its shareholding in the Company or when the shareholder that proposed the
appointment of the director to the Company sells its shareholding in full or reduces it to a level that requires the reduction or
elimination of its proprietary directors.
Members of any Committees or Commissions that may exist will cease to be so when they cease to be directors.
C.1.22 Explain whether the function of chief executive of the company is performed by the person
holding the position of Chairman of the Board. If applicable, state the measures taken to limit the
risks of accumulation of power by a single person:
Yes
No X
State and, if applicable, explain whether rules have been established whereby one of the
independent directors is authorized to request that a meeting of the Board be called or that other
items be included on the agenda, to coordinate and hear the concerns of external directors and to
direct the evaluation by the Board of Directors:
Yes
No X
C.1.23 Are qualified majorities, other than those legally provided for, required for any type of decision?:
Yes
No X
If applicable, describe the differences:
17
C.1.24 Explain whether there exist specific requirements, other than those relating to Directors, to be
appointed Chairman:
Yes
No X
C.1.25 State whether the Chairman has a casting vote:

Yes
No X
C.1.26 State whether the By-Laws or the Regulations of the Board of Directors fix any age limit for
Directors:
Yes
No X
C.1.27 State whether the By-Laws or the Regulations of the Board of Directors fix a limited term of
office for independent Directors, other than that established by law:
Yes
No X
C.1.28 State whether the By-Laws or the Board of Directors Regulations fix any specific rules for
proxy-voting at meetings of the Board of Directors, the way in which this is done and, in
particular, the maximum number of proxy votes that a Director may hold, as well as whether it
is compulsory to delegate to a Director with the same classification. If applicable, briefly
describe these rules:
Article 22 of the By-Laws states that any Director may provide written authorization for another Director to represent him.
In addition, article 11 of the Board of Directors Regulations states that each director may authorize another director to
represent him without any limit on the number of proxies that one director may hold at the Board meeting. Absent directors
may authorize another director to represent them using any written means and telegrams, e-mails or faxes addressed to the
Chairman of the Board of Directors are valid.
C.1.29 State the number of meetings held by the Board of Directors during the F.Y. Likewise, if
applicable, state the number of times that the Board met without the presence of the
Chairman. Proxies granted with specific instructions must be counted as presences:
Number of Board meetings
10
0
Number of Board meetings without the presence of the Chairman
State the number of meetings held by the different commissions of the Board during the F.Y.:
Commission
Number of meetings
AUDIT COMMITTEE
18
C.1.30 Indicate the number of meetings held by the Board of Directors during the fiscal year at which
not all of its members have been in attendance. Proxies granted with specific instructions must
be counted as presences:
10
Attendances of Directors
100.00%
% of attendances of total votes during the F.Y.
C.1.31 State whether the individual and consolidated annual accounts that are submitted to the Board
for its approval are certified previously:
Yes
No X
Identify, if applicable, the person/s who certified the companys individual and consolidated
accounts to be formulated by the Board:
C.1.32 Explain the mechanism, if any, established by the Board of Directors to prevent the individual
and consolidated accounts it formulates from being submitted to the General Meeting with
qualifications in the audit report:
The Board of Directors controls, through the Audit Committee, the whole process of drawing up and formulating the annual
accounts of Zardoya Otis, S.A. and its Group.
To date, the annual accounts (individual and consolidated) have never been submitted to the General Meeting with
qualifications in the Audit Report.
In order to meet recommendation 53 of the Unified Code of Good Governance, article 12 of the Board of Directors
Regulations states that the Board of Directors will endeavour to submit the accounts to the General Meeting of Shareholders
without reservations or qualifications in the audit report and, in exceptional cases where these may exist, the Chairman of the
Audit Committee and the auditors will provide the shareholders with clear explanations on the content and scope of said
reservations or qualifications.
C.1.33 Is the Secretary of the Board of Directors a Director?

Yes
No X
C.1.34 Describe the procedures for appointment and removal of the Secretary of the Board, stating
whether the appointment and removal thereof have been reported upon by the Nominating
Commission and approved by the full Board:
Procedure for appointment and removal
In accordance with article 8 of the Board of Directors Regulations, the Secretary will be designated by the Board of Directors.
The Secretary was appointed by the Board of Directors on April 13, 2011, with the prior favourable opinion of the
Nominating Commission.
Neither the By-Laws nor the Board of Directors Regulations provide for any specific procedure for removal of the Secretary
and, therefore, he will leave his post when the term for which he was appointed expires or when the Board of Directors so
resolves with the vote in favour of a majority of its members.
Yes
Does the Nominating Commission report on the appointment?
Does the Nominating Commission report on the removal?
Does the full Board approve the appointment?
Does the full Board approve the removal?
No
19
Is the secretary of the Board responsible for specially ensuring compliance with good
governance recommendations?
Yes X
No
Comments
In order to meet recommendation 18 of the Unified Code of Good Governance article 8 of the Board of Directors Regulations
expressly provides that the Secretary of the Board of Directors must ensure that the resolutions of the Board of Directors:
(i) se are in line with the letter and the spirit of the Laws and their implementing regulations, including those approved by the
regulatory bodies;
(ii) are in accordance with the By-Laws of the Company and the Regulations of the General Meeting, the Board of Directors
and any other body present in the Company; and
(iii)respect the rules or recommendations on good corporate governance in force at any given moment
C.1.35 State the mechanisms, if any, used by the Company to preserve the independence of the
auditors, the financial analysts, the investment banks and the rating agencies;
Zardoya Otis, S.A. has an internal Code of Conduct the ultimate purpose of which to protect the interests of those who
invest in securities of Zardoya Otis, S.A. and avoid any situation where market abuse exists, establishing, in this respect, a
set of rules applicable to the management and control of privileged and relevant information, the carrying out of
transactions with securities of Zardoya Otis, S.A. itself, the carrying out of treasury stock transactions and detecting and
handling conflicts of interest, among other issues.
In order to meet recommendation 50.2.c) of the Unified Code of Good Governance, article 12.A) 2 of the Board of Directors
Regulations states that the Audit Committee must be in contact with the external Account Auditor in order to receive
information on any matters related to the process of performing the account audit, such as the progress and findings of the
audit program, must maintain with the external Account Auditor those other communications required by the account
auditing legislation and technical audit rules and must check that the Companys senior management is acting in accordance
with its recommendations. Likewise, the Audit Committee must receive information on any issues which may place the
external Account Auditors independence at risk. To this effect:
(i) the Company shall notify any change of auditor to the CNMV as a relevant fact, accompanied by a statement of any
disagreements that may have arisen with the outgoing auditor and, if such disagreements exist, the contents thereof;
(ii) it shall ensure that the Company and the external Account Auditor respect the current regulations on the provision of nonaudit services, the limits on the concentration of the auditor's business and, in general, the other requirements designed to
safeguard auditors' independence
(iii)the Company shall establish appropriate contacts with the account auditor to receive information on any questions which
might place the latters independence at risk, which will be examined by the Audit Committee, and any other issues related to
the process of conducting the account audit, together with the matters provided for in the account auditing legislation and
auditing rules. In particular, the Audit Committee will receive from the account auditors, on an annual basis, written confirmation
of their independence in relation to the Company or any companies that may be related directly or indirectly thereto, together
with confirmation of the additional services of any nature rendered to said companies by the auditors or by persons or entities
related to the auditors, in accordance with the provisions of the Account Auditing Law:
(iv)
if the external account auditor resigns, it will investigate the issues that gave rise to said resignation; and
(v) the Audit Committee shall issue an annual report, prior to the issue of the audit report, expressing an opinion on the
independence of the account auditors. Said report shall also always make a pronouncement on the additional services to
which point (iii) above refers.
Finally, in accordance with article 12 A) 2 g) of the Board of Directors Regulations, the Audit Committee must encourage the
external group auditor to take on the auditing of all the groups companies.
C.1.36 State whether the Company has changed the external auditor during the fiscal year. If so,
identify the incoming and the outgoing auditor:
Yes
No X
If there has been any disagreement with the outgoing auditor, describe the content thereof:
20
C.1.37 State whether the audit firm carries out work for the company and/or its group other than audit
work and, if so, state the amount of the fees received for said work and the percentage of the
fees billed to the company and/or its group that these represent::
Yes X
No
Company
Total
89
89
31,58%
0,00%
18,76%
Amount of work other than audit work (thousands of euros)

Amount of work other than audit work / Total amount billed by the audit
firm (%)
Group
C.1.38 State whether the audit report on the annual financial statements for the prior fiscal year has
observations or qualifications. If so, state the reasons given by the Chairman of the Audit
Committee to explain the content and scope of such observations or qualifications:
Yes
No X
C.1.39 State the number of years for which the current audit firm has been uninterruptedly auditing the
annual accounts of the company and/or its group. Likewise, state the percentage represented
by the number of years audited by the current audit firm in relation to the total number of years
for which the annual accounts have been audited:
Company
Number of consecutive years
Number of years audited by the current audit firm / Number of years for which the company
has been audited (%)
Group
27
27
67.50%
100.00%
C.1.40 State whether any procedure exists that allows the Directors to obtain external advice and, if
applicable, give details thereof:
Yes X
No
Details of procedure
Article 17 of B states that the Board of Directors may, with the broadest authorization, obtain any information or advice it may
require on any aspect of Zardoya Otis, S.A. whenever it so requires to perform its functions. The right to information extends
to subsidiary companies, both national and foreign, and will be channelled through the Chairman, who will handle the
directors requests, providing him/her with the information directly, offering any appropriate contacts or arranging any
measures that may be necessary for the examination requested.
The request for the engagement will be channelled through the Chairman or Secretary of the Board of Directors, who may
make it subject to the Boards prior authorization, which may be refused when there are reasons to justify this, including the
following circumstances:
The request for the engagement will be channelled through the Chairman or Secretary of the Board of Directors, who may
make it subject to the Boards prior authorization, which may be refused when there are reasons to justify this, including the
following circumstances:
(i) When it is not necessary in order to correctly fulfil the functions entrusted to the directors.
(ii)
If the cost is not reasonable in the light of the importance of the problem and the Companys assets and income.
(iii) If the technical assistance requested may be given adequately by experts and technical staff within the Company.
(iv) If it may represent a risk to the confidentiality of the information that must be provided to the expert.
The Audit Committee and Nominating Commission may obtain external advice when they deem this necessary in
order to perform their functions.
Likewise, the Chairman may, as an exception, temporarily restrict access to certain information, informing the Board of this
decision.
21
C.1.41 State whether there exists a procedure that allows the Directors to obtain the information required to
prepare the meetings of the governing bodies in sufficient time and, if applicable, give details:
Yes X
No
Details of procedure
In accordance with article 10 of the Board of Directors Regulations, Zardoya Otis, S.A.s Board meetings are called 10 days before
the date fixed for the meeting.
The notice of the meeting, which will be sent by letter, e-mail, telegram or fax to each one of the directors at the address they
have provided for this purpose, must also attach the Agenda and provide the directors with the information necessary to prepare
to items to be considered at each meeting. For matters in which the Audit Committee is involved, the latter will meet before the
Board meeting, which it will subsequently inform, and will obtain such information and call such persons from the Company,
auditors, etc. that it deems necessary in order to fulfil its functions appropriately.
Likewise, article17 of the Board of Directors Regulations states that any director may obtain, with the broadest authorization, any
information or advice they he/she requires on any aspect of the Company whenever this is required in order to fulfil his/her functions.
The right to information covers subsidiaries, both national and foreign, and will be channelled through the Chairman of the Board of
Directors, who will handle the requests of any director and provide the information directly, offering the appropriate contacts or taking
any measures necessary for the examination requested.
In order to meet recommendation 16 of the Unified Code of Good Governance article 6 of the Board of Directors Regulations
expressly provides that the Chairman of the Board is responsible for ensuring that all the directors receive sufficient information to
prepare the items to be discussed at each meeting of the Board of Directors.
C.1.42 State whether the Company has established any rules requiring Directors to inform the Company
and, if applicable, resign from their position in cases in which the credit and reputation of the
Company may be damaged. If so, describe such rules:
Yes X
No
Explain the rules

Articles 15 and 19 of the Board of Directors Regulations follow recommendation 32 of the Unified Code of Good Governance.
1. Article 15 of the Board of Directors Regulations states that directors are obliged to tender their resignation to the Board of
Directors and formalize it if the latter sees fit in the following cases:
(i) When they are affected by any of the circumstances for incompatibility or prohibition provided for by law;
(ii) When they may damage the Companys prestige or reputation;
(iii) When they are accused or prosecuted or when a ruling for opening of an oral trial in ordinary proceedings or a conviction in
abridged proceedings is issued against them for a serious offence, in particular, any of the offences mentioned in article 213 of the
Capital Companies Law;
(iv)
When they are seriously rebuked by the Audit Committee or for having breached their duties as Directors; or
(v) When an external proprietary director transfers its shareholding or when the shareholder that proposed the appointment of the
director to the Company sells its shareholding in full or reduces it to a level that requires the reduction or elimination of its proprietary
directors.
2. Article 19 of the Board of Directors Regulations states that the directors are obliged to notify the Board of Directors as soon as
possible and, if applicable, resign, in the event that any of the circumstances that may affect them and may damage the
Companys prestige and reputation arise, in particular, if they are prosecuted in criminal proceedings.
C.1.43 State whether any member of the Board of Directors has informed the Company that he has
become subject to an order for further criminal prosecution upon indictment or that an order for the
commencement of an oral trial has been issued against him for the commission of any of the crimes
contemplated in article 213 of the Capital Companies Law:
Yes
No X
State whether the Board of Directors has analyzed the case. If so, provide a duly substantiated
explanation of the decision adopted regarding whether or not the Director should remain in office or, if
applicable, set forth the actions taken by the Board of Directors up to the date of this report or those it
plans to take hereafter:
22
C.1.44 Provide details of any significant agreements into which the company has entered that come into
force, are modified or conclude in the event of a change in the control of the company as a result of
a public tender offer and the effects of said entry into force, modification or conclusion:
There are no any significant agreements into which the company has entered that come into force, are modified or
conclude in the event of a change in the control of the company as a result of a public takeover bid.
C.1.45 State, on an aggregated basis, and describe in detail, any agreements between the company and
its directors, managers or employees that provide for indemnities or contain any guarantee or
protective clauses in the event that they resign or are unfairly dismissed or if the contractual
relationship concludes as the result of a public tender offer or any other type of transaction:
Number of beneficiaries: 0
Type of beneficiary:
NONE
Description of Agreement:
NONE
State whether these contracts must be notified to and/or approved by the governing body/ies
of the company or its group:
Board of Directors
General Meeting
No
No
Body authorizing the clauses
Yes
Is the General Meeting informed of the clauses
No
X
C.2 Commissions of the Board of Directors
C.2.1 Give details of all the commissions of the Board of Directors, their members and the proportion
of proprietary and independent directors that sit on them:
AUDIT COMMITTEE
Name
Position
Type
MR MARK GEORGE
CHAIRMAN
Independent
MR JOSE MARIA LOIZAGA
DIRECTOR
Proprietary
MR PIERRE DEJOUX
DIRECTOR
Proprietary
% of executive directors
0.00%
% of proprietary directors
66.66%
% of independent directors
33.33%
% of other external directors
0.00%
Name
Position
Type
MR PHILIPPE DELPECH
CHAIRMAN
Proprietary
DIRECTOR
Proprietary
DIRECTOR
Independent
% of executive directors
0.00%
% of proprietary directors
66.66%
% of independent directors
33.33%
% of other external directors
0.00%
C.2.2 Complete the following chart with information on the number of women directors who have sat
on the commissions of the Board of Directors in the last four F.Y.s:
Number of women directors
F.Y. 2013
Number
F.Y 2012
%
Number
F.Y. 2011
%
Number
F.Y. 2010
%
Number
AUDIT COMMITTEE
0 0.00%
0 0.00%
0 0.00%
0 0.00%
NOMINATING
0 0.00%
0 0.00%
0 0.00%
0 0.00%
COMMISSION
EXECUTIVE OR DELEGATE
COMMITTEE
0 0.00%
0 0.00%
0 0.00%
0 0.00%
0 0.00%
0 0.00%
0 0.00%
0 0.00%
NOMINATING AND
COMPENSATION
COMMISSION
C.2.3 State whether the Audit Committee has the following duties:
Yes
To monitor the preparation and the integrity of the financial information relating to the company and, if
appropriate, to the group, checking compliance with legal requirements, the appropriate demarcation of
the scope of consolidation, and the correct application of accounting standards.
Periodically review the internal control and risk management systems, in order for the main risks to
be properly identified, managed and made known.
Ensure the independence and efficacy of the internal audit function; propose the selection,
appointment, reappointment and removal of the head of the internal audit service; propose the
departments budget; receive regular reports on its activities; and verify that senior management takes
into account the findings and recommendations of its reports.
Establish and supervise a mechanism whereby staff can report, confidentially and, if appropriate,
anonymously, potentially significant irregularities within the company that they detect, in particular
financial or accounting irregularities
Submit to the Board proposals for the selection, appointment, re-election and replacement of the
external auditor, as well as the contractual terms under which it should be hired.
Regularly receive from the external auditor information regarding the audit plan and the results of the
implementation thereof, and verify that senior management takes its recommendations into account.
Ensure the independence of the external auditor.
No
C.2.4 Provide a description of the rules of organization and operation and of the responsibilities
attributed to each one of the commissions of the Board:
See "H. Other information of interest"
24
C.2.5
State, if applicable, whether rules exist for the Board commissions, where they are available
to be consulted and the amendments made to them during the F.Y. Likewise, state whether
any annual report on the activities of each commission has been prepared on a voluntary
basis:
Audit Committee
The Audit Committee has the competencies and rules of operation transcribed above. The annual financial statements include
a summary of the main points discussed by the Audit Committee in the F.Y. ended November 30, 2013. All this information is
available on the Companys website( (www.otis.com/site/es-esl/Pages/InformacionparaAccionistaseInversores.aspx), which
likewise contains a heading concerning the Commissions of the Board of Directors within the Corporate Governance
section.
Article 24 bis f) of the By-Laws shows that the Audit Committees competencies are not only these reflected in this article, but
may be supplemented by the provisions of the Board of Directors Regulations.
Nominating Commission
The Nominating Committee has the competencies and rules of operation transcribed above. The annual financial statements
include a summary of the main points discussed by the Audit Committee in the F.Y. ended November 30, 2013. All this
information
is
available
on
the
Companys
website
(www.otis.com/site/esesl/Pages/InformacionparaAccionistaseInversores.aspx), which likewise contains a heading concerning the Commissions of
the Board of Directors within the Corporate Governance section.
No annual report is prepared on the activities of the Nominating Commission.
C.2.6
State whether the composition of the delegate or executive commission reflects the
participation of the Directors on the Board of Directors in accordance with their classification:
Yes
No X
If not, explain the composition of the delegate or executive commission

Zardoya Otis, S.A. dos not have a delegate or executive commission
D RELATED-PARTY TRANSACTIONS AND INTRAGROUP TRANSACTIONS
D.1 Identify the competent body and explain, if applicable, the procedure for approval of related-party and
intragroup transactions:
Body competent to approve related transactions
The Board of Directors
Procedure for approval of related transactions

According to article 12 (A) 2 (j) of the Board of Directors Regulations, the Audit Committee will provide a report to the Board of
Directors prior to the latters adoption of decisions on related transactions.
According to article 11 of the Board of Directors Regulations, the Board of Directors will adopt its decisions, including, therefore, the
approval of related transactions, by an absolute majority of all the Directors present or represented at the meeting.
Explain whether the approval of transactions with related parties has been delegated, stating, if
applicable, the body or person to which it has been delegated.
N/A
25
D.2 Give details of any transactions that are significant because of their amount or relevant because of their
content that have been performed between the company or companies belonging to its group and
significant shareholders of the company:
Name of corporate name of
Type of transaction
Name or corporate name of the Nature of the

company or company belonging relationship
to its group
UNITED TECHNOLOGIES
CORPORATION (UTC)
Contractual
License Agreements
UNITED TECHNOLOGIES
CORPORATION (UTC)
ZARDOYA OTIS, S.A.
Contractual
Other
Amount
(thousands
of euros)
17,726
547
D.3 Give details of any transactions that are significant because of their amount or content that have been
performed between the company or companies belonging to its group and the directors of the company or
its management staff:
D.4 Give details of any significant transactions performed by the company with other companies belonging to
the same group when these are not eliminated in the process of preparing consolidated financial
statements and do not form part of the companys ordinary trade in terms of their purpose and conditions:
Any intragroup transaction performed with companies established in countries or territories classified as tax
havens must be reported.
Corporate name of the group company: OTIS
ELEVATOR COMPANY
Amount (thousands of euros): 29,366 Brief
description of the transaction: IMPORTS
(FROM)
ELEVATOR COMPANY
Amount (thousands of euros): 152,463
Brief description of the transaction:
EXPORTS (TO)
ELEVATOR COMPANY
Amount (thousands of euros): 1,340
Brief description of the transaction::
INVOICING(TO) OF THE R&D OF ZARDOYA OTIS
26
D.5
State the amount of the transactions performed with other related parties
(thousands of euros):
D.6
Give details of the any mechanisms established to detect, determine and solve any possible conflicts of
interest between the company and/or its group and its Directors, management staff or significant
shareholders:
In accordance with article 229 of the Capital Companies Act, directors affected by a conflict of interest shall refrain from
participating in resolutions or decisions that concern the operation to which the conflict refers.
Article 19 of the Board of Directors Regulations formally establishes the obligation for the directors to abstain in the event that a situation
arises in which their personal interests and those of the Company enter into conflict.
Additionally, article 10 of the Internal Code of Conduct on Matters relating to the Stock Markets, approved and updated by Zardoya Otis,
S.A., states that directors, members of management and significant shareholders are obliged to inform the Secretary of the Board of
Directors on any possible conflicts of interest to which they are subject. Any doubt on the possibility of a conflict of interest must be
consulted with the Secretary of the Board of Directors before any decision that may be affected by said conflict is adopted.
The Secretary is responsible for keeping an updated register of conflicts of interests. The Secretary may periodically request the persons
subject to the Internal Conduct Regulations on Matters relating to the Stock Markets to provide written confirmation that no conflicts of
interest exist or that no new conflicts have arisen.
According to article 10.4 of the Internal Code of Conduct, In the event of a conflict of interest that the Secretary has been unable to
solve and that requires authorized intervention, it will be submitted to the Board of Directors, which will take the following rules into
account in order to decide:
(a) In the event of conflict between the directors, members of management or significant shareholders and Zardoya Otis, S.A., the
interests of the Company will prevail.
(b) In the event of conflict between Zardoya Otis, S.A. and a shareholder or customer or between the two latter, the fair criterion of
the Board will be applicable.
D.7
Is more than one company of the Group listed in Spain?

Yes
No X
Identify the subsidiaries listed in Spain:
E RISK CONTROL AND MANAGEMENT SYSTEMS

E.1 Explain the scope of the companys risk management system:.
Section F of this Annual Corporate Governance Report presents a description of the main features of the internal control and risk
management systems in relation to the financial reporting process. In particular, the risk policy of the Company and its consolidated
group is described.
The risk control and management policy contains:
- The different types of risk (operating, technological, financial, legal, reputational, etc.) to which the Company is exposed, including
financial or economic risk, contingent liabilities and other off-balance-sheet risks;
- Fixing the level of risk that the Company considers acceptable;
-The measures foreseen to mitigate the impact of the risks identified, in the event that they materialize; and
- The internal reporting and control systems that are used to control and manage the aforementioned
contingent liabilities and off-balance-sheet risks mentioned above.
risks, including the
E.2 Identify the company bodies responsible for preparing and executing the Risk Management System:
Article 3 of the Board of Directors Regulations states that the Board of Directors is competent to approve the risk control and
management system.
Article 12 (A) 2 (e ) of the Board of Directors Regulations states that the Audit Committee must periodically review the internal control and
management systems in order for the main risks to be identified, managed and made known.
Risk management is controlled by company Management in accordance with policies approved by the Board of Directors. Management
assesses and hedges financial risks in close collaboration with the operating units of the rest of the Group, in order to:
- Guarantee that the most significant risks are identified, assessed and managed;
- Ensure an appropriate operating segregation of risk management functions;
- Ensure that the level of risk exposure accepted by the Company in its operations is adapted to the risk profile.
27
E.3 State the main risks that may affect attainment of the business objectives:
As mentioned in point E1 above, the risk control and management policy fixes the different types of risk, among which the principal ones are
- Operating,
- Technological,
- Financial,
- Legal,
- Reputational,
From the financial point of view, the activities of the Company and the Group are exposed to a number of financial risks: market risk
(including exchange rate risk, fair value interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk). The
Companys global risk management program concentrates on the uncertainty in the financial markets and tries to minimize any potential
adverse effects on the Companys financial profitability. In Note 4 of the Individual Annual Financial Statements and Note 3 of the
Consolidated Annual Financial Statements, management of each one of the financial risks is explained.
E.4 State whether the company has a risk tolerance level:

As stated in point E1 above, the risk control and management policy fixes the level of risk that the Company considers acceptable.
E.5 State the risks that materialized during the F.Y.:

As in previous F.Y.s, the risk that materialized in the F.Y. refers to trade receivables:
Circumstances that caused this: deterioration in the national economic situation.

Operation of the control systems: both the Company and the Group have customer credit analysis policies and
periodic debt monitoring procedures performed by the departments involved in collection management.
E.6 Explain the response and supervision plans for the companys main risks:
Zardoya Otis, S.A. has an Internal Audit Department, with systems and processes that are intended to assess, monitor, mitigate or
reduce the main risks of the Company and its consolidated group by preventive measures and alert of possible situations of risk. The
Company has the risks that affect assets and liability covered by the appropriate insurance policies. Likewise, the Company and its
consolidated group have processes that ensure control of any risk that may stem from trading operations. Section F of this Annual
Corporate Governance Report describes the internal control and risk management systems in greater detail.
INTERNAL CONTROL AND RISK MANAGEMENT SYSTEMS IN RELATION TO

FINANCIAL REPORTING (ICFR)
Describe the mechanisms that form the risk control and management systems in relation to financial
reporting (ICFR) in the company.
F.1 The companys control environment
Describe, stating the main characteristics, at least:
F.1.1. The bodies and/or functions that are responsible for: (i) the existence and maintenance of an
appropriate and effective ICFR, (ii) the implementation thereof, and (iii) the supervision
thereof:
Article 3 of the Board of Directors Regulations states that the Board of Directors is competent to approve the risk control and
management policy, as well as the periodic monitoring of the internal reporting and control systems.
According to article 24 bis of the By-Laws and, especially, article 12 (a) 2. (c) of the Board of Directors Regulations, the Audit
Committee will have the duties of: (i) ensuring the independence and efficacy of the internal audit function, (ii) proposing the
selection, appointment, reappointment and removal of the head of the internal audit service, (iii) proposing the departments
budget; (iv) receiving regular reports on its activities, (v) reviewing the internal audit annual work plan its its annual focus on
activities, (vii) verifying that senior management takes into account the findings and recommendations of its reports, and (viii)
discussing any significant weaknesses in the internal control system (the Internal Control System) noted in the course of
the audit with the account auditors.
In addition, the Audit Committee has the function of receiving information on and supervising the process of preparation of
the financial reporting of the Company and the Group, checking compliance with legal requirements, the appropriate
demarcation of the scope of consolidation, and the correct application of accounting standards, ensuring its integrity.
Lastly, article 12 (A) 2. (e) of the Board of Directors Regulations states that the Audit Committee must periodically review the
internal control and management systems in order for the principal risks to be identified, managed and made known. In
28
particular, the risk control and management policy states:
- The different types of risk (operating, technological, financial, legal, reputational, etc.) to which the Company is exposed,
including financial or economic risk, contingent liabilities and other off-balance-sheet risks;
- Fixing the level of risk that the Company considers acceptable;
-The measures foreseen to mitigate the impact of the risks identified, in the event that they materialize; and
- The internal reporting and control systems that are used to control and manage the aforementioned risks, including the
contingent liabilities and off-balance-sheet risks mentioned above.
The Companys Audit Committee is formed by three Directors. Its Chairman is Mr Jos Mara Loizaga Viguri (independent
director) and the other two members are Mr Angelo Messina (proprietary director) and Mr Lindsay Harvey (proprietary
director).
F.1.2. Whether the following elements exist, especially in relation to the financial reporting:
Departments and/or mechanisms responsible for: (i) the design and review of the organizational structure; (ii)
clearly defining the lines of responsibility and authority, with an appropriate distribution of tasks and functions;
and (iii) the existence of sufficient procedures for these to be correctly known within the company.
The design and review of the organizational structure is the responsibility of the Human Resources Department and,
ultimately, the CEO, within his functions as an executive director.
More detailed definition of resource needs is carried out by the area in question, together with Human Resources, including,
therefore, the areas related to the process of preparing the financial reporting and the rest of the Groups operational areas.
The Company and the Group have an organization chart including all the functional areas.
In relation to sufficient procedures for the information to be correctly known, all the information on the organization chart and
organizational structure is in the Group intranet (the Intranet), to which all employees have access.
In addition, the Group Financial Department (the Financial Department), responsible for preparing the financial reporting,
has a system of responsibilities and segregation of functions that fixes the different levels for approval for each one of the
activities and processes of the financial and operating departments.
Code of conduct, approving body, degree to which it is known and explained, principles and values included
(stating whether there are specific references to the operations register and financial reporting), body
responsible for analyzing non-compliances and proposing corrective actions and penalties.
The Company and the Group have an Internal Code of Conduct on Matters relating to the Stock Markets, approved by the
Board of Directors, and a Code of Ethics (the Code of Ethics), which has been notified to all the members of the
organization through the Intranet.
The Code of Ethics is based on the following essential principles: (i) compliance with legal requirements; (ii) correct
preparation of the financial statements, which must be complete and accurate; and (iii) fair treatment of customers and
other interested parties. Thus, the Code of Ethics does not merely require compliance with the law, but represents a
commitment to positive behaviour that forges trust, promotes respect and shows integrity.
The principles established in the Code of Ethics are: (i) loyalty to the Company; (ii) meeting commitments; (iii) acting
bona fides; (iii) respect towards others; (v) accurate and true information; (vi) not to jeopardize safety or quality; and (iv)
to help to detect and avoid bad practices.
The Group has a Good Business Practice Manager, responsible for implementing the Code of Ethics and ensuring
compliance therewith.
The Audit Committee makes an annual review of the plan for compliance with the Code of Ethics for each F.Y., covering
the actions, those responsible for them, dates and current status, likewise obtaining information on the training and
updating courses that each one of the organizations members must attend.
As stated in article 12 of the Companys Board of Directors Regulations, mentioned in article 11 of the Internal Code of
Conduct, the Audit Committee is responsible for supervising effective compliance with the obligations established in the
Internal Code of Conduct. In particular, the Audit Committee must:
- Comply and ensure compliance with the stock market rules on conduct and the rules contained in the Internal Code
of Conduct, the procedures thereof and any other present or future supplementary rules.
- Promote knowledge of the Internal Code of Conduct and other stock market rules on conduct on the part of the
persons subject to them, insiders and the Group..
- Develop, if applicable, the procedures and implementing rules deemed appropriate in order to apply the Internal
Code of Conduct.
- Interpret the rules contained in the Internal Code of Conduct and solve any queries or issues raised by those subject
to it and/or insiders.
- Conduct disciplinary procedures against those subject to the Code of Conduct and insiders due to failure to comply
with the rules of the Code of Conduct.
- Propose to the Companys Board of Directors the revisions or improvements to the Internal Code of Conduct that it
deems appropriate.
Complaints channel that allows any financial or accounting irregularities, in addition to any breaches of the code
of conduct and/or irregular activities in the organization to be reported to the Audit Committee, stating, if
applicable, whether this channel is confidential.
The Group has a confidential communication channel that allows all Group employees to make suggestions and place
complaints in such a way that their concerns can be heard swiftly, neutrally and in the strictest confidence.
The program provides:
- Confidentiality: the identity of the person making a communication is protected.
- Neutrality: neither management nor the employee takes part.
- independence: there is no hierarchical relationship between the person responsible for the program and Management.
- Quality: the system operates as an intermediary between the employees and Management, while ensuring that communication
is clear and comprehensible.
Thus, employees may make communications as follows:
- Through a free telephone call.
- By completing a form and sending it to the relevant centre by mail or fax.
- Using the program application from anywhere with Internet access.
Training programs and regular updates for employees involved in preparing and reviewing the financial
information and in the assessment of the ICFR, covering at least accounting rules, auditing, internal control and
risk management.
The employees involved in preparing and reviewing the financial information have a sound knowledge of financial and
accounting matters. Additionally, the Group has a training plan for its employees, supervised by the Human Resources
Department.
Furthermore, courses, seminars and work groups related to updates of the accounting legislation, auditing, internal control
and risk management are organized, since the Group holds agreements for regular training with a supplier specialized in
the accounting, financial, legal, tax and labour areas, among others.
F.2 Assessment of financial reporting risks

Provide information on at least:
F.2.1.
The principal characteristics of the risk identification process, including the risks of error or
fraud, in respect of:
Whether the process exists and is documented:
The Group has a risk management system (the Risk Map), which is carried out by the Groups different operating and
functional units and submitted for review by the Audit Committee and Board of Directors. The Risk Map is based on
integrated management of each and every one of the business processes and an appropriate segregation of the levels of
risk, in order to achieve compliance with the strategic objectives fixed by the Group.
Whether the process covers the whole of the financial reporting objectives (existence and occurrence; integrity;
measurement, presentation, breakdown and comparability; and rights and obligations. Whether it is updated and
how often:
All the risks that could affect the financial reporting (principally operational risks) are assessed and quantified in order to
carry out regular supervision of the controls designed to mitigate the risks identified. Operational risks cover the
objectives of existence, occurrence, integrity, measurement, presentation, breakdown and comparability, and rights and
obligations.
Risk management is based on dynamic analyses for each one of the processes that comprise the business units,
meaning that those responsible for each one of the organizations areas or departments identify and assess the
potential risks.
30
The existence of a process to identify the scope of the consolidated group, taking into account, among other
aspects, the possible existence of complex corporate structures and instrumental entities or special-purpose
vehicles:
The Group does not have a complex corporate structure. As may be seen from the consolidated annual financial
statements, all the subsidiaries are consolidated. The Financial Department, through its Consolidation Department, carries
out the consolidation process. In close collaboration with the Legal Department, on the basis of the decisions adopted by
the Board of Directors on corporate transactions for acquisitions, business combinations, disposals and mergers, among
others, the scope of the consolidation and the percentage interests held by each company in its subsidiaries are
determined.
Following the best corporate governance practices, in order to comply with Recommendation No. 52 of the Unified Code
of Good Governance, article 12 of the Board of Directors Regulations includes, among the duties of the Audit Committee,
the need to provide a report to the Board of Directors before the latter adopts any decisions on the creation or acquisition
of shares or interests in special-purpose vehicles or entities resident in countries or territories considered tax havens, as
well as any other similar transactions or operations that, given their complexity, could impair the Groups transparency.
Whether the process takes into account the effects of other types of risk (operational, technological, financial,
legal, reputational, environmental, etc.) insofar as they affect the financial statements:
The different type of risk that comprise the Group risk management system are grouped principally into the following
categories:
- Compliance
- Operational
- Strategic
- Reputational.
- Financial
- Legal
Each one of these categories has controls and mitigating actions, which are reviewed and included in annual work plan of the
internal audit departments (the Internal Audit Department).
Which of the companys governing bodies supervises the process:

The Audit Committee, with the ICFR system, is responsible for periodically reviewing the internal control and risk
management systems, in order for the main risks that affect the Groups financial information to be identified and managed.
F.3 Control activities

State, describing their main characteristics, whether the company has at least:
F.3.1.
Financial reporting review and authorization procedures and a description of the ICFR to be
published in the stock markets, stating the persons responsible for them, as well as
documentation describing the flows of activities and controls (including those concerning the risk
of fraud) for the different transactions that could have a material effect on the financial
statements, including the procedure for closing the accounts and a specific review of significant
judgements, estimates, measurements and projections.
The Financial Department consolidates and reviews all the financial information of the Company and its subsidiaries, including,
in this respect, the companies resident in Spain, Portugal and Morocco. Once said information is known, it prepares monthly,
quarterly and six-monthly reports and annual financial statements, among other items. Likewise, the Financial Department
submits the annual, six-monthly and quarterly financial statements for review by the Audit Committee, as well as any other
financial information that is sent to regulatory bodies or publications. The Audit Committee checks that the information is
complete, accurate and sufficient to provide a true and fair view of the Groups equity, financial situation and results and the
cash flows, which are prepared in accordance with the legal framework applicable to individual and consolidated financial
statements.
The Board of Directors approves all the financial information that the Group publishes periodically and formulates the annual
financial statements together with the Annual Corporate Governance Report.
The review of the estimates and assumptions used is based on the Groups historical experience and other factors
considered reasonable. Said procedure is included in the procedure manual for closing the accounts.
F.3.2.
Internal control policies and procedures for the information systems (including, among
others,access security, control of changes, the operation thereof, operational continuity and
segregation of functions) that support the companys significant processes in relation to
preparing and publishing the financial information:
The Systems Department acts directly in accordance with the rules on data security and, furthermore, the Group Financial
Department authorizes all access to sensitive systems that could affect the financial reporting.
The rules are based on establishing access security controls and control of changes, operations, operating continuity and
segregation of functions. All these rules are published in the Intranet in order to enable each one of the employees to access
them.
The Group has a series of actions that guarantee the correct running of the operations in the event of an incident, in order to
mitigate a possible materialization of an incident or reduce it to a minimum.
The Internal Audit Departments annual work plan includes the review of the correct running of the Internal Control System
covering both technological aspects and processes, aimed to maintain them.
F.3.3. Internal control policies and procedures intended to supervise management of activities
subcontracted to third parties, as well as any aspects of assessment, calculation or valuation
entrusted to independent experts, that could have a material effect on the financial statements:
The relationship with any group supplier is conducted through those specifically responsible in each business unit, for both
goods and services. Any selection of products or services subcontracted to third parties is done using technical,
professional and economic criteria..
The Internal Audit Departments annual work plan includes a review of compliance with the rules related to the main
procedures for purchasing goods and services.
Any subcontracting of valuations to independent experts is carried out through the Financial Department and notified to
the Audit Committee, since they relate to valuations included in the Groups financing reporting. At any event, the
Group Financial Department ensures that the supplier is independent, experienced and prestigious, both nationally and
internationally.
F.4 Information and communication:

State, describing their main characteristics, whether the company has at least:
F.4.1.
A specific function responsible for defining accounting policies, keeping them updated
(accounting policy area or department) and solving any queries or conflicts from the
interpretation thereof, maintaining smooth communication with those responsible for
operations in the organization, as well as an updated accounting policy manual that has been
notified to the units through which the company operates:
The Financial Department, through its Accounting and Consolidation Departments, is responsible for reviewing the
accounting policies and rules and ensuring they are kept updated for each of the Groups processes and units. Likewise, the
Internal Control department maintains a smooth relationship with the Financial Department, those responsible for the
financial area in each of the Group companies and other units and corporate areas, with whom they establish the procedure
updates when applicable.
All the Groups manuals and procedures are communicated through the Intranet.
F.4.2.
Mechanisms for capturing and preparing the financial information with consistent formats,
applied and used by all the units of the company or group, which contain the principal
financial statements and notes, as well as the information provided on ICFR:
The Financial Department, through the Consolidation Department, has the function of preparing the financial statements and
the notes thereto. In relation to the mechanisms for capturing and preparing the financial information, except for Otis Elevadores
Lda. (Portugal) and Otis Maroc, S.A. (Morocco), the companies that belong to the consolidated group use the same financial
information system, the same policies and identical accounting procedures, which permits a unified capturing mechanism that is
in accordance with the accounting rules in force at any given moment. Additionally, there are reporting packages for the
companies resident in Portugal and Morocco, which allows the financial information to be unified and made consistent and
compliance with the policies and bases of presentation used by the Group.
F.5 Describe, stating their main characteristics, at least:

F.5.1.
The ICFR supervision activities performed by the Audit Committee and whether the company has
an internal audit service whose duties include supporting the Committee in its supervision of the
internal control system, including ICFR. Likewise, describe the scope of the evaluation of ICFR
carried out in the year and the procedure whereby those responsible for performing the evaluation
notify the results, whether the company has an action plan that describes any possible corrective
measures and whether the impact on the financial information has been considered.
The Company has an Internal Audit Department, with systems and processes, which aims to evaluate, mitigate or reduce the
principal risks of the Company and Group through preventive measures and alerts of possible situations of risk.
The Audit Committee, among its ICFR supervision activities, review the financial reporting that is sent to the Comisin Nacional del
Mercado de Valores on a quarterly basis.
Additionally, the Audit Committee supervises and monitors the annual audit plan. The head of the Internal Audit Department presents
the findings of the work plan and the tasks performed by said Department during the F.Y. to the Audit Committee.
The Groups Internal Audit Department has five members, who have extensive knowledge in the areas of internal and external
auditing and management control, as well as experience in the operational part of the Groups units.
The Internal Audit Department has a work manual that establishes the procedures and functions that each one of its members must
perform.
The main functions of the Internal Audit Department are:
- To evaluate the appropriateness, sufficiency and efficacy of the Groups Internal Control System.
- To evaluate compliance with the Risk Management System.
The Group has an account auditor (the Account Auditor), who, as part of its procedures to audit the annual financial statements,
reviews the Internal Control System. The Account Auditor has a meeting with the Audit Committee at least once a year and
presents the findings of its work at said meeting. In the event that any weakness or issue has been noted in the course of the work,
the Audit Committee will establish actions and oblige management to consider the actions established. In the findings presented to
the Audit Committee, the Account Auditor has not included any weaknesses or issues concerning the Internal Control System.
F.5.2.
Whether the company has a discussion procedure whereby the account auditor (as established in
the Technical Audit Notes), the internal audit service and other experts may inform senior
management and the companys audit committee or directors of any significant weaknesses noted
during the annual financial statement review processes or any other processes for which they are
responsible. Likewise, state whether the company has an action plan intended to correct or mitigate
the weaknesses noted:
The Financial Department, the Internal Audit Department and the Audit Committee maintain regular and smooth
communication with the Groups Account Auditor.
At the beginning of the F.Y., the Account Auditor presents its audit plan to the Financial Department, containing the visit dates,
objectives, companies to be audited and a list of audit fees, so that the Audit Committee can review it.
During the whole audit process, the Account Auditor holds regular meetings with key employees responsible for preparing the
financial information, establishing preliminary findings in each one of the phases of the process.
Throughout the F.Y. or in any phase of the external audit process, the Account Auditor may meet with the Audit Committee.
Upon conclusion of the audit, as stated previously, the Account Auditor presents its findings to the Audit Committee, which will
evaluate any situation reported by the former. This will be considered by both the Internal Audit Department and the Audit
Committee in order to undertake the appropriate actions.
F.6 Other relevant information

N/A
F.7 Report of the external auditor

State:
F.7.1.
Whether the ICFR information sent to the markets has been subject to review by the external
auditor, in which case the company must include the relevant report as an exhibit hereto.
Otherwise, state the reasons.
Report attached to this 2013 Corporate Governance Report on the Company.
34
3
DEGREE TO WHICH THE CORPORATE GOVERNANCE RECOMMENDATIONS ARE

FOLLOWED
State the degree to which the company follows the recommendations of the Unified Code of Good
Governance.
In the event that any recommendation is not followed or is only followed partially, provide a detailed
explanation of the reasons so that the shareholders, investors and market in general have enough
information to evaluate the companys behaviour. General explanations are not acceptable.
1.
The By-Laws of listed companies do not limit the maximum number of votes that can be cast by a
single shareholder, or impose other obstacles to the takeover of the company by means of the
acquisition of its shares on the market.
See sections: A.10, B.1, B.2, C.1.23 & C.1.24.
Complies X
2.
Explain
When both the parent company and a company controlled by it are listed companies, they both
provide detailed public disclosure on:
a) Their respective areas of activity, and any business dealings between them, as well as between the
controlled listed company and other companies belonging to the group;
b) The mechanisms in place to resolve any conflicts of interest that may arise. See sections: D.4 & D.7
Complies
Complies in part
Explain
Not applicable X
Even if not expressly required under applicable commercial Laws, transactions involving a structural
change of the company and, in particular, the following, are submitted to the shareholders at the
General Shareholders Meeting for approval:
a) The transformation of listed companies into holding companies through subsidiarization, i.e.,
reallocating core activities to controlled entities that were previously carried out by the
company itself, even if the latter retains full ownership of the former;
b) The acquisition or disposal of key operating assets, when it involves an actual change in the
corporate purpose;
c) Transactions whose effect is tantamount to the liquidation of the company.

See section: B.6
Complies X
Complies in part
Explain
4. Detailed proposals of the resolutions to be adopted at the General Shareholders Meeting, including the
information to which recommendation 27 refers, are made public at the time of publication of the notice of
call to the General Shareholders Meeting.
Complies X
Explain
35
5. Matters that are substantially independent are voted on separately at the General Shareholders Meeting, in
order to allow the shareholders to express their voting preferences separately. This rule applies, in
particular:
a) To the appointment or ratification of directors, which shall be voted on individually;
b) In the event of amendments of the By-Laws, to each article or group of articles that are
substantially independent of one another.
Complies X
Complies in part
Explain
6. Companies allow split votes so financial intermediaries who are recorded as having shareholder status but
act for the account of different clients can divide their votes in accordance with the instructions given by
such clients.
Complies X
Explain
7. The Board performs its duties with a unity of purpose and independent judgment, affording equal treatment
to all shareholders in furtherance of the corporate interests, which shall be understood to mean the
optimization, in a sustained fashion, of the financial value of the Company.
It likewise ensures that in its dealings with stakeholders, the Company abides by the laws and regulations,
fulfils its obligations and contracts in good faith, respects the customs and good practices of the industries
and territories in which it carries on its business, and upholds any other social responsibility standards to
which it has voluntarily adhered.
Complies X
Complies in part
Explain
8. The Board assumes responsibility, as its core mission, for approving the companys strategy and the
organization required to put it into practice, and to ensure that Management meets the objectives set while
pursuing the companys interests and corporate purpose. As such, the full Board reserves for itself the right
to approve:
a) The companys policies and general lines of strategy, and in particular:
i)
The strategic or business Plan as well as the management targets and annual budgets;
ii)
The investment and financing policy;
iii) The design of the structure of the corporate group;

iv) The corporate governance policy;
v)
The corporate social responsibility policy;
vi) The policy for compensation and assessment of the performance of senior managers;
vii) The risk control and management policy, as well as the periodic monitoring of internal information and control
systems.
viii) The dividend policy and the policy regarding treasury stock and, especially, the limits thereto.
See sections: C.1.14, C.1.16 & E.2
36
b) The following decisions:

i) At the proposal of the chief executive of the Company, the appointment and, if applicable, removal of senior
managers, as well as their severance packages;
ii) The compensation of directors and, in the case of executive directors, the additional compensation to be paid for
their executive duties and other terms of their contracts;
iii) The financial information that the Company must periodically make public due to its status as listed company;
iv) Investments or transactions of all kinds which are strategic in nature due to the large amount or special
characteristics thereof, unless approval thereof falls upon the shareholders at the General Shareholders
Meeting;
v) The creation or acquisition of interests in special -purpose entities or entities registered in countries or
territories regarded as tax havens, as well as any other transactions or operations of a similar nature whose
complexity might impair the transparency of the group.
c) Transactions performed by the company with directors, with significant shareholders or

shareholders with Board representation, or with other persons related thereto (related-party
transactions).
However, Board authorization need not be required in connection with related-party transactions that
simultaneously meet the following three conditions:
1. They are governed by standard-form agreements applied on an across-the-board basis to a large
number of clients;
2. They are conducted at prices or rates generally set by the party acting as supplier of the goods or
services in question;
3. The amount thereof is no more than 1% of the Companys annual revenues.
It is recommended that related-party transactions only be approved by the Board upon the prior favourable
report of the Audit Committee or such other committee handling the same function; and that the directors
affected thereby should neither exercise nor delegate their votes, and should withdraw from the meeting
room while the Board deliberates and votes on the transaction.
It is recommended that the powers granted herein to the Board are conferred without the power of
delegation, except for those mentioned under b) and c) above, which may, for urgent reasons, be adopted
by the Executive Committee subject to subsequent ratification by the full Board.
See sections: D.1 & D.6
Complies
Complies in part X
Explain
See article 3 (Functions) of the Board of Directors Regulations
9. In order to operate effectively and in a participatory manner, the Board ideally is comprised of no few than
five and no more than fifteen members.
See section: C.1.2
Complies X
Explain
37
10. External directors, proprietary and independent, occupy an ample majority of the Board and the number of
executive directors is the minimum necessary number, bearing in mind the complexity of the corporate
group and the percentage interest held by the executive directors in the Company s share capital.
See sections: A.3 & C.1.3.
Complies X
Complies in part
Explain
11. Among external directors, the relation between the number of proprietary directors and independent
directors reflects the proportion existing between the share capital of the company represented by
proprietary directors and the rest of its capital.
This strict proportionality standard can be relaxed so that the weight of proprietary directors is
greater than would correspond to the total percentage of the share capital that they represent:
1. In large cap companies where few or no equity stakes attain the legal threshold as significant,
but there are shareholders holding interests with a high absolute value.
2. In companies with a plurality of shareholders represented on the Board but not otherwise
related.
See sections: A.2, A.3 & C.1.3
Com pli es
E xp l a in X
The Board of Directors Regulations do not require the Board to include a minimum number of independent directors. The composition of the
Board of Directors is appropriate to the composition of the shareholders and, at any event, meets the provisions of the Board of Directors
Regulations and the By-Laws.
12. The number of independent directors represents at least one-third of the total number of directors.
.
See section: C.1.3
Com pli es
E xp l a in X
The Board of Directors Regulations do not require the Board to be formed by a minimum number of independent directors. The composition of
the Board of Directors is considered appropriate to the composition of the shareholders and, at any event, meets the provisions of the Board of
Directors Regulations and the By-Laws.
13. The status of each director is explained by the Board at the General Shareholders Meeting at which the
shareholders are to make or ratify their appointment and that such status is confirmed or reviewed, as the
case may be, annually in the Annual Corporate Governance Report, after verification by the Nominating
Commission. Said report also discloses the reasons for the appointment of proprietary directors at the
proposal of shareholders controlling less than 5% of the share capital, as well as the reasons for not having
accommodated formal petitions, if any, for presence on the Board from shareholders whose equity stake is
equal to or greater than that others at whose proposal proprietary directors have been appointed.
See sections: C.1.3 & C.1.8
Complies X
Complies in part
Explain
14. When women directors are few or non-existent, the Nominating Commission takes steps to ensure that,
when new vacancies are filled:
a) Selection procedures do not have an implied bias that hinders the selection of women directors;
b) The company deliberately looks for women with the target professional profile and includes
them among the potential candidates.
See sections: C.1.2, C.1.4, C.1.5, C.1.6, C.2.2 Y C.2.4.
Complies
Complies in part X
Explain
Not applicable
At the 2014 year end, to which this report refers, Zardoya Otis, S.A. had a small Board of Directors. Of its 9 members, 6 are proprietary
directors, one is an executive director, one is independent and other is classified as other external directors in accordance with
Recommendation 11 of the Unified Code of Good Governance. At present, Ms Mara Luisa Zardoya Arana is the representative of the company
Euro-Syns, S.A. In this respect, articles 5 and 12 B) 1 of the Board of Directors Regulations require this body to ensure, as part of its duties, that
director candidates are chosen from among persons that, apart from meeting legal requirements for the position and those of the By-Laws, have
the appropriate knowledge, prestige and experience to carry out the duties they will have to perform, irrespective of their gender.
Likewise, article 12 B) 2 of the Board of Directors Regulations states that one of the duties of the Nominating Commission is to ensure that,
when new vacancies are filled or new directors are appointed, the selection procedures do not have an implied bias that could lead to any kind
of discrimination and to report to the Board of Directors on gender diversity issues.
15. The Chairman, as the person responsible for the effective operation of the Board, ensures that directors
receive adequate information in advance of Board meetings; promotes debate and the active involvement
of directors during Board meetings; safeguards their rights to freely take a position and express their
opinion; and, working with the chairmen of the appropriate committees, organizes and coordinates regular
evaluations of the Board and, where appropriate, the Chief Executive Officer.
See sections: C.1.19 & C.1 41

Complies
Complies in part X
Explain
According to article 11 of the Board of Directors Regulations, the Chairman is responsible for organizing the debate at the Board of
Directors meetings and encouraging the participation of all the directors in the Boards deliberations.
Likewise, according to the Board of Directors Regulations, he must ensure that the directors receive sufficient information to prepare the items
on the agenda at the Board meetings and channel any information requests submitted by directors.
Notwithstanding, given the shareholder composition and the structure of the Board (on which 6 of the 9 directors are proprietary directors, one
is an executive director and another belongs to the category of other external directors), the Board of Directors has not seen fit to date to
make any formal evaluation of its performance.
16. When the Chairman of the Board is also the chief executive of the company, one of the independent
directors is authorized to request the calling of a Board meeting or the inclusion of new business on the
agenda; to coordinate and hear the concerns of external directors; and to lead the Boards evaluation of
the Chairman.
See section: C.1.22

Complies
Complies in part
Explain
Not applicable X
39
17. The Secretary of the Board takes particular care to ensure that the Boards actions:
a) Adhere to the letter and the spirit of laws and their implementing regulations, including those
approved by the regulatory authorities;
b) Comply with the companys bylaws and the Regulations for the General Shareholders Meeting,
the Regulations of the Board and other regulations of the company;
c) Are informed by those good governance recommendations included in this Unified Code as the
company has subscribed to.
And, in order to safeguard the independence, impartiality and professionalism of the Secretary, his
appointment and removal are reported by the Nominating Commission and approved by the full Board; and
that such appointment and removal procedures are set forth in the Regulations of the Board.
See section: C.1.34
Complies X
Complies in part
Explain
18. The Board meets with the frequency required to perform its duties efficiently, in accordance with the
calendar and agendas set at the beginning of the fiscal year, and that each Director is entitled to propose
items of the agenda that were not originally included therein.
See section: C.1.29
Complies X
Complies in part
Explain
19. Directors absences are limited to unavoidable cases and quantified in the Annual Corporate Governance
Report. And when there is no choice but to grant a proxy, it is granted with instructions.
See sections: C.1.28, C.1.29 & C.1.30
Complies X
Complies in part
Explain
20. When directors or the Secretary express concerns about a proposal or, in the case of the directors,
regarding the running of the company, and such concerns have not been resolved at a Board meeting, such
concerns are recorded in the minutes at the request of the person expressing them.
Complies X
Complies in part
Explain
Not applicable
21. The full Board evaluates the following on a yearly basis:

a) The quality and efficiency of the Boards operation;
b) On the basis of a report submitted to it by the Nominating Commission, how well the Chairman
and chief executive of the company have carried out their duties;
c) The performance of its Committees, on the basis of the reports furnished by them.
See sections: C.1.19 y C.1.20
Complies
Complies in part
Explain X
Given the shareholder composition and the structure of the Board (on which 6 of the 9 directors are proprietary directors, one is an executive
director, one is independent and the other belongs to the category of other external directors), the Board of Directors has not seen fit to date to
make any formal evaluation of its performance.
40
22. All directors are able to exercise the right to request any additional information they require on matters
within the Board s competence . Unless the By-laws or the Regulations of the Board provide otherwise,
such requests are addressed to the Chairman or the Secretary of the Board.
See section: C.1.41
Complies X
Explain
23. All directors are entitled to call on the company for the advice they need to carry out their duties. The
company provides suitable channels for the exercise of this right, which, in special circumstances, may
include external advice at the companys expense.
See section: C.1.40
Complies X
Explain
24. Companies organize induction programs for new Directors to rapidly and adequately acquaint them with the
Company and its corporate governance rules. Directors are also offered refresher training programs when
circumstances so advise.
Complies X
Complies in part
Explain
25. Companies require that directors devote sufficient time and effort to perform their duties efficiently, and, as
such:
a) Directors apprise the Nominating Commission of their other professional duties, in case they
might detract from the necessary dedication;
b) Companies lay down rules about the number of boards on which their directors may sit.
See sections: C.1.12, C.1.13 & C.1.17
Complies
Complies in part X
Explain
The Company has not seen fit to limit the number of Boards of Directors of which the directors may sit, in particular because many of the
proprietary directors are executives of the parent group, United Technologies Corporation, and, therefore, are members of the Boards of
Directors of other group companies.
26. The proposal for the appointment or re-election of directors that the Board submits to the shareholders at
the General Shareholders Meeting, as well as the interim appointment of directors to fill vacancies, are
approved by the Board:
a) On the proposal of the Nominating Commission, in the case of independent directors.

b) Subject to a prior report from the Nominating Commission, in the case of other directors. See
section: C.1.3
Complies X
Complies in part
Explain
41
27. Companies post the following director information on their websites, and keep such information updated:
a)
Professional and biographical profile;
b) Other Boards of Directors of listed or unlisted companies on which they sit;

c)
Indication of the directors classification, specifying, for proprietary directors, the shareholder
they represent or to whom they are related.
d) Date of their first and subsequent appointments as a company director; and

e)
Shares held in the company and options thereon held by them.

Complies X
Complies in part
Explain
28. Proprietary directors tender their resignation when the shareholder they represent sells its entire
shareholding interest. The appropriate number of them do likewise when such shareholder reduces its
interest to a level that requires the reduction of the number of its proprietary directors.
See sections: A.2 , A.3 & C.1.2
Complies X
Complies in part
Explain
29. The Board of Directors does not propose the removal of any independent director prior to the expiration of
the term, set by the bylaws, for which he was appointed, except when good cause is found by the Board
upon a prior report of the Nominating Commission. In particular, good cause shall be deemed to exist
whenever the director has failed to perform the duties inherent in his position or comes under any of the
circumstances that cause him to lose his independent status, in accordance with Order ECC/461/2013.
The removal of independent directors may also be proposed as a result of tender offers, mergers or
other similar corporate transactions that entail a change in the equity structure of the Company, when
such changes in the structure of the Board follow from the proportionality standard mentioned in
Recommendation 11.
See sections: C.1.2, C.1.9, C.1.19 & C.1.27
Complies X
Explain
30. Companies establish rules obliging directors to report and, if appropriate, to resign in those instances as a
result of which the credit and reputation of the company might be damaged and, in particular, they require
that such directors report to the Board any criminal charges brought against them, and the progress of any
subsequent proceedings.
If a director is indicted or tried for any of the crimes described in article 213 of the Capital Companies
Law, the Board examines the matter as soon as practicable and, in view of the particular
circumstances thereof, decides whether or not it is appropriate for the director to continue to hold
office. And the Board provides a substantiated account thereof in the Annual Corporate Governance
Report.
See sections: C.1.42, C.1.43
Complies X
Complies in part
Explain
31. All directors clearly express their opposition when they feel that any proposed resolution submitted to the
Board might be contrary to the best interests of the company. And in particular, independent directors and
the other directors not affected by the potential conflict of interest do likewise in the case of decisions that
could be detrimental to the shareholders lacking Board representation.
When the Board adopts material or reiterated resolutions about which a director has expressed
serious reservations, such director draws the pertinent conclusions and, if he chooses to resign,
sets out the reasons in the letter referred to in the next Recommendation.
This Recommendation also applies to the Secretary of the Board, even if he is not a director.
Complies X
Complies in part
Explain
Not applicable
32. Directors who give up their place before their tenure expires, through resignation or otherwise, explain the
reasons in a letter sent to all members of the Board. Without prejudice to such withdrawal being
communicated as a significant event, the reason for the withdrawal is explained in the Annual Corporate
Governance Report.
See section: C.1.9
Complies
Complies in part
Explain X
Not applicable
The Company does not see fit to impose the obligation to explain the reasons for their resignation upon the directors, notwithstanding
their right to make the reasons for such resignation public.
33. Compensation paid by means of delivery of shares in the company or companies that are members of the
group, share options or instruments indexed to the price of the shares, and variable compensation linked to
the company s performance or pension schemes is confined to executive directors.
This recommendation shall not apply to the delivery of shares when such delivery is subject to the
condition that the directors hold the shares until they cease to hold office as directors.
Complies X
Complies in part
Explain
Not applicable
34. The compensation of external directors is such as is necessary to compensate them for the dedication,
qualifications and responsibility required by their position, but is not so high as to compromise their
independence.
Complies X
Explain
Not applicable
35. The compensation linked to company earnings takes into account any qualifications included in the external
auditors report that reduce such earnings.
Complies X
Explain
Not applicable
36. In the case of variable compensation, compensation policies include technical safeguards to ensure that such
compensation reflects the professional performance of the beneficiaries thereof and not simply the general
performance of the markets or of the industry in which the company does business or circumstances of this
kind.
Complies
Explain X
Not applicable
The variable compensation considered in the compensation policy of Zardoya Otis, S.A. is related only to the attendance of the meetings of
the Board of Directors, the remuneration pursuant to the By-Laws being limited to the total amount of 1,000,000 euros..
43
37. When there is an Executive Committee (hereinafter, Executive Committee), the breakdown of its members
by director category is similar to that of the Board, and its secretary is the Secretary of the Board.
Complies
Complies in part
Explain
Not applicable X
38. The Board is always kept informed of the matters dealt with and the resolutions adopted by the Executive
Committee, and all members of the Board receive a copy of the minutes of the meetings of the Executive
Committee.
Complies
Explain
Not applicable X
39. In addition to the Audit Committee mandatory under the Stock Market Act, the Board of Directors forms a
single Nominating and Compensation Commission as a separate committee of the Board, or a Nominating
Commission and a Compensation Commission.
The rules governing the make-up and operation of the Audit Committee and the Nominating and
Compensation Commission or Commissions are set forth in the Regulations of the Board, and
include the following:
a) The Board appoints the members of such Committees, taking into account the knowledge, skills
and experience of the Directors and the responsibilities of each Commission, discusses its
proposals and reports, and receives a report, at the first meeting of the full Board following the
meetings of such committees, on their activities and the work.
b) These Commissions are formed exclusively by external directors and have a minimum of three
members. The foregoing is without prejudice to the attendance of executive directors or senior
managers, when expressly resolved by the members of the Commission.
c) Commission Chairmen are independent directors.
d) They may receive external advice, whenever they feel this is necessary for the discharge of their
duties.
e) Minutes are prepared of their meetings, and a copy sent to all Board members.
Complies
Complies in part X
Explain
The Company has created a Nominating Commission but not a Compensation Commission.
At any event, the rules of operation of the Audit Committee and Nominating Commission appear in the Board of Directors Regulations and
include those to which points (a) to (e) above refer.
40. Supervising compliance with internal codes of conduct and corporate governance rules is entrusted to the
Audit Committee, the Nominating Commission or, if they exist separately, to the Compliance or Corporate
Governance Committee.
Complies X
Explain
44
41. The members of the Audit Committee and, particularly, the Chairman thereof, are appointed taking into
account their knowledge and experience in accounting, auditing and risk management matters.
Complies X
Explain
42. Listed companies have an internal audit function which, under the supervision of the Audit Committee, ensures
the smooth operation of the information and internal control systems.
See section: C.2.3
Complies X
Explain
43. The head of internal audit presents an annual work plan to the Audit Committee; reports to it directly on any
issues arising in the execution of such plan; and submits an activities report to it at the end of each fiscal
year.
Complies X
Complies in part
Explain
44. The risk control and management policy specifies at least:
a) The different types of risk (operational, technological, financial, legal, reputational, etc.) the
company is exposed to, including contingent liabilities and other off-balance sheet risks among
the financial or economic risks.
b) The determination of the risk level the company sees as acceptable;
c) Measures in place designed to mitigate the impact of the risks identified, should they
materialize;
d) The internal reporting and control systems to be used to monitor and manage the above risks,
including contingent liabilities and off-balance sheet risks.
See section: E
Complies X
Complies in part
Explain
45. The Audit Committees role is to:

1. With respect to the internal control and reporting systems:
a) To ensure that the principal risks identified as a result of the supervision of the efficacy of the companys
internal control and internal audit, if applicable, are managed and made known appropriately.
b) To ensure the independence and efficacy of the internal audit function; propose the selection, appointment,
reappointment and removal of the head of the internal audit service; propose the departments budget;
receive regular reports on its activities; and verify that senior management takes into account the findings
and recommendations of its reports.
c) To establish and supervise a mechanism whereby staff can report, confidentially and, if appropriate,
anonymously, potentially significant irregularities within the company that they detect, in particular financial
or accounting irregularities.
2. With respect to the external auditor:

a) To receive regular information from the external auditor on the audit plan and the results of the
implementation thereof, and check that senior management takes its recommendations into account.
b) To ensure the independence of the external auditor, to which end:
i) The company reports a change of auditor to the CNMV as a significant event, accompanied by a statement
of any disagreements with the outgoing auditor and the reasons for the same.
ii) In the event of resignation of the external auditor, the Committee investigates the circumstances that
may have given rise thereto.
See sections: C.1.36, C.2.3, C.2.4 & E.2
Complies X
Complies in part
Explain
46. The Audit Committee may cause any company employee or manager to appear before it, and even order
their appearance without the presence of any other manager.
Complies X
Explain
47. The Audit Committee reports to the Board, prior to the adoption thereby of the corresponding decisions, on
the following matters specified in Recommendation 8:
a) The financial information that the Company must periodically make public due to its status as a
listed company. The Committee should ensure that interim financial statements are prepared
under the same accounting standards as the annual financial statements and, to this end,
consider whether a limited review by the external auditor is appropriate.
b) The creation or acquisition of interests in special -purpose entities or entities registered in

countries or territories considered tax havens, and any other transactions or operations of a
comparable nature whose complexity might impair the transparency of the group.
c) Related-party transactions, unless such prior reporting duty has been assigned to another
supervision and control committee.
Complies X
Complies in part
Explain
48. The Board of Directors seeks to present the financial statements to the shareholders at the General
Shareholders Meeting without reservations or qualifications in the auditors report and, in the exceptional
instances where they do exist, both the Chairman of the Audit Committee and the auditors give a clear
account to the shareholders of the content and scope of such reservations or qualifications.
See section: C.1.38
Complies X
Complies in part
Explain
46
49. The majority of the members of the Nominating Commission or of the Nominating and Compensation
Commission, if one and the same are independent directors.
See section: C.2.1
Complies
Explain X
Not applicable
The Company currently only has one director who meets the conditions to be considered independent.
50. The Nominating Commission has the following duties, in addition to those stated in the earlier
Recommendations:
a) To assess the qualifications, knowledge and experience necessary to sit on the Board, defining,
accordingly, the duties and qualifications required of the candidates to fill each vacancy, and
decide the time and dedication necessary for them to properly perform their duties.
b) To examine or organize, in the manner it deems appropriate, the succession of the Chairman
and the chief executive and, if appropriate, make proposals to the Board for such succession to
take place in an orderly and well-planned manner.
c) To report on senior manager appointments and removals that the chief executive proposes to
the Board.
d) To report to the Board on the gender diversity issues discussed in Recommendation 14 of this
Code.
See section: C.2.4
Complies X
Complies in part
Explain
Not applicable
51. The Nominating Commission consults with the Company s Chairman and chief executive, especially on
matters relating to executive directors.
And that any Board member may request that the Nominating Commission consider possible
candidates to fill vacancies for the position of director if it finds them suitably qualified.
Complies X
Complies in part
Explain
Not applicable
52. The Compensation Commission is responsible for the following duties, in addition to those set forth in the
earlier recommendations:
a) To propose to the Board of Directors:
i) The compensation policy for directors and senior managers;
ii) The individual compensation of executive directors and other terms of their contracts.
iii)The basic terms and conditions of the contracts with senior managers.
b) To ensure compliance with the compensation policy set by the company.

See sections: C.2.4
Complies
Complies in part
Explain
Not applicable X
53. The Compensation Commission consults with the Chairman and chief executive of the Company,
especially on matters relating to executive directors and senior managers.
Complies
Explain
Not applicable X
48
7
OTHER INFORMATION OF INTEREST

1. If there is any relevant aspect in relation to corporate governance in the company or in companies
belonging to the group that is not included in the other sections of this report, but that it is
necessary to include in order to provide more complete and substantiated information on the
governance structure and practices in the company, provide a brief description thereof.
2. This section may include any other information, clarification or nuance related to the preceding
sections of the Report, provided that it is relevant and is not repetitive.
Specifically, state whether the company is subject to corporate governance legislation other than
the Spanish legislation and, if applicable, include any information that it is obliged to provide, other
than the information required in the present report.
3. The company may likewise state whether it has adhered on a voluntary basis to other codes of
ethical principles or good practices, whether they be international, industry-related or pertaining to
another sphere. If applicable, identify the code in question and the date of adhesion.
See on next pages
This annual corporate governance report was approved by the companys Board of Directors at its
meeting held on February 26, 2013.
State whether any directors have voted against the approval of this Report or have abstained in
relation thereto.
Yes
No X
H. OTHER INFORMATION OF INTEREST
(Exhibit to section C.2.4. of the 2014 ACGR): Provide a description of the rules of
organization and operation and of the responsibilities attributed to each one of the
commissions of the Board.
AUDIT COMMITTEE AND NOMINATING COMMISSION
A) AUDIT COMMITTEE
1. Competencies
Article 24-bis of the By-Laws states that the competencies of the Audit Committee are
as follows:
a) To inform, through the Chairman, at the General Shareholders Meeting on issues
raised thereat on subjects in which it is competent.
b) To propose to the Board of Directors, for submission to the General Shareholders
Meeting, the appointment of the external auditor to which article 264 of the Capital
Companies Law refers.
c) To supervise the Companys internal audit services.
d) To receive information on the Companys financial information and internal control
systems.
e) To keep in contact with the Auditor to receive information on any issues that may
place said Auditors independence at risk and any other matters related to the process of
conducting the account audit and to exchange the other communications provided for in
account auditing legislation and technical auditing rules with the Auditor.
f) Any other functions attributed to it in the Board of Directors Regulations.
In order to meet recommendations Nos. 45, 48, 49, 50, 51, 52 and 53 of the Unified
Code of Good Governance, article 12 A) of the Board of Directors Regulations states
that the competencies of the Audit Committee are as follows:
(a) To report, through its Chairman, to the General Shareholders Meeting with respect
to matters within its competency raised thereat by the shareholders.
(b) To propose to the Board of Directors, for submission to the General Shareholders
Meeting, the recommendations for the selection, appointment, reappointment and
removal of the external account auditor and its engagement conditions.
(c) To supervise the efficacy of the Companys internal control, internal audit and risk
control systems and, in particular: (i) to monitor the independence and efficacy in its
functions of the internal audit services; (ii) to propose the selection, appointment,
reappointment and removal of the head of internal audit service; (iii) to propose the
budget of said service; (iv) to receive regular reports on their activities; (v) to review the
annual work program and the yearly activities report of the internal audit service; (vi) to
be informed of any incidents arising during the implementation of the internal audit
services yearly work plan, (vii) to verify that senior management acts in accordance
with the conclusions and recommendations contained in their reports, and (viii to
discuss any significant weaknesses detected in the internal audit system in the course of
the audit with the account auditors.
(d) To be informed of and to monitor the process of preparing and presenting financial
information on the Company and, where appropriate, the group, checking for
compliance with legal provisions, the accurate demarcation of the consolidated group
and the correct application of accounting principles, ensuring the integrity thereof.
(e) To review internal control and risk management systems on a regular basis, so that
main risks are properly identified, managed and disclosed. In particular, control and risk
management policy shall identify, at least:
(i) the different types of risk (operational, technological, financial, legal, reputational,
etc.) the Company is exposed to, including contingent liabilities and other off-balance
sheet risks among the financial and economic risks;
(ii) he determination of the risk level the Company sees as acceptable;
(iii) the measures in place to mitigate the impact of the identified risk events, should
they occur; and
(iv) the internal reporting and control systems which will be used to control and manage
said risks, including the aforementioned contingent liabilities and off-balance sheet risks.
(f) To be in contact with the external Account Auditor in order to receive information on
any matters related to the process of performing the account audit, such as the progress
and findings of the audit program, to maintain with the external Account Auditor those
other communications required by the account auditing legislation and technical audit
rules and check that the Companys senior management is acting in accordance with its
recommendations. Likewise, to receive information on any issues which may place the
external Account Auditors independence at risk. To this effect:
(i) the Company shall notify any change of auditor to the CNMV as a relevant fact,
accompanied by a statement of any disagreements that may have arisen with the
outgoing auditor and, if such disagreements exist, the contents thereof;
(ii) the Audit Committee shall ensure that the Company and the external Account
Auditor respect the current regulations on the provision of non-audit services, the limits
on the concentration of the auditor's business and, in general, the other requirements
designed to safeguard auditors' independence;
the Company shall establish appropriate contacts with the account auditor to receive
information on any questions which might place the latters independence at risk, which
will be examined by the Audit Committee, and any other issues related to the process of
conducting the account audit, together with the matters provided for in the account
auditing legislation and auditing rules. In particular, the Audit Committee will receive
from the account auditors, on an annual basis, written confirmation of their
independence in relation to the Company or any companies that may be related directly
or indirectly thereto, together with confirmation of the additional services of any nature
rendered to said companies by the auditors or by persons or entities related to the
auditors, in accordance with the provisions of the Account Auditing Law.
(iii) the Audit Committee shall investigate the issues giving rise to the resignation of any
external Account Auditor; and
the Audit Committee shall issue an annual report, prior to the issue of the audit report,
expressing an opinion on the independence of the account auditors. Said report shall also
always make a pronouncement on the additional services to which point (iii) above
refers.
(g) To encourage the group auditor to take on the auditing of all the groups companies.
(h) To establish and supervise a mechanism whereby employees can report,

confidentially and, if seen fit, anonymously, any potentially serious irregularities that
they note within the Company, especially financial and accounting irregularities. The
Chairman of the Audit Committee shall inform the Board of Directors on any reports
received at the first Board meeting following receipt thereof.
(i) To supervise compliance with the internal codes of conduct and good corporate
governance rules and recommendations in force at any given moment.
(j) To inform the Board of Directors, before the decision-making, on the following
issues:
(i) the financial information that the Company must periodically disclose. The
Committee shall ensure that interim statements are drawn up under the same accounting
principles as the annual statements and, to this end, may ask the external auditor to
conduct a limited review;
(ii) the creation or acquisition of shares in special purpose vehicles or entities resident
in countries or territories considered tax havens, and any other transactions or
operations of an analogous nature whose complexity may detract from the transparency
of the group; and
(iii) related-party transactions.
(k) Any others that may be attributed to them by the By-Laws, the Board of Directors
Regulations, the Board of Directors itself or the Law.
2. Rules of organization and operation
In accordance with article 24 bis of the By-Laws, the rules of organization and
operation of the Audit Committee are as follows:
First. The Audit Committee shall meet at least once quarterly and whenever the
Chairman considers convenient or at least two members of the Committee so request.
Second. The Committee is a collegiate body and its decisions shall be adopted by a
majority of its members. Resolutions adopted by the Audit Committee shall be notified
to the Board of Directors by sending it the full contents of the minutes of the meetings
of this Committee.
Third. The Audit Committee may require the presence at any of its meetings of any
officer or employee of the Company (and may order them to appear without the
presence of any other manager, in which case, their attendance shall be requested
through the General Manager), executive director, the external account auditor or the
legal advisor to the Board of Directors.
Fourth. The Committee shall review the financial information that is sent on a quarterly
basis to the Comisin Nacional del Mercado de Valores (CNMV).
Fifth. The Board of Directors is competent to develop, expand and complete the rules
on the composition, operation and competencies of the Audit Committee in all aspects
not specified in these By-Laws by drawing up internal regulations of the Audit
Committee, which must respect the provisions of these By-Laws and the law.
In order to meet recommendations numbers 44 and 51 of the Unified Code of Good
Governance, article 12 of the Board of Directors Regulations states that the rules of
operation of the Audit Committee are the following:
(a) The Audit Committee shall meet at least once quarterly and whenever the Chairman
considers convenient or at least two members of the Committee so request.
(b) Meetings of the Audit Committee will reach a quorum when a majority of the members are
present or represented. Its decisions shall likewise be adopted by a majority of the members.
(c) The Chief Executive Officer shall provide the Audit Committee with the
information it requires to perform its duties in relation to the directors and senior
management of the principal companies in which interests are held.
(d) The Audit Committee shall have free access to any kind of information or
documentation held by or available to the Company that it considers necessary in order
to perform its duties.
(e) The Committee may require the presence at any of its meetings of any employee or
officer (and may order them to appear without the presence of any other manager, in
which case, their attendance shall be requested through the General Manager), any
executive Director, the external account auditor and/or the legal advisor to the Board of
Directors.
(f) Minutes of Audit Committee meetings shall be taken and a copy shall be sent to all
the members of the Board and to the Board of Directors, sending the full contents of the
minutes of the Committee meetings. Furthermore, the Chairman of the Audit
Committee shall, if applicable, report on any decisions and/or significant events that
may have occurred at the Committee meetings at the first Board meeting to take place
after the Committee meeting in question.
(g) The Committee shall review the financial information that is sent on a quarterly
basis to the Comisin Nacional del Mercado de Valores (CNMV).
(h) The Board of Directors shall discuss the proposals and/or reports presented by the
Audit Committee.
In the absence of any specific rule, the provisions of the Board of Directors
Regulations on the operation thereof shall be applicable to the Audit Committee to the
extent that they are not incompatible with the nature of the latter, in particular, the
rules on calling the meetings, delegating another Director as a representative, universal
meetings, written ballots without holding a meeting, the persons acting as chairman
and secretary of the meetings and the approval of the minutes thereof.
B) NOMINATING COMMISSION
1. Competencies
According to article 12 B) 2 of the Board of Directors Regulations, the Nominating
Commission shall have the following competencies:
(a) To assess the skills, knowledge and experience necessary on the Board and,
consequently, to define the functions and abilities necessary in the candidates who are
to cover any vacancies and assess the time and effort required for them to carry out their
duties well.
(b) To report on proposals for designating the internal positions to be held by the
members of the Board of Directors and propose the members that should compose each
of the Commissions to the Board of Directors.
(c) To examine or organize, in the manner seen fit, the succession of the Chairman and
the chief executive and, if applicable, to make proposals to the Board so that said
succession takes place in an orderly and well-planned manner.
(d) To report on the appointments and removals of members of senior management that
the Companys chief executive proposes to the Board.
(e) To ensure that, when new vacancies arise or new Directors are appointed, the selection
procedures are not implicitly biased in any way that might imply some kind of discrimination
and to report to the Board on gender diversity issues.
(f) Any others that may be attributed to them by the By-Laws, these Regulations, the
Board of Directors or the Law.
The Nominating Commission shall consult the Chairman and the Companys chief
executive, especially in relation to issues concerning the executive directors.
Any Director may request the Nominating Commission to consider potential candidates
to cover vacancies on the Board, so that it may decide on their suitability.
2. Rules of organization and operation

In accordance with article 12 B) 3 of the Board of Directors Regulations, the
Nominating Commission shall observe the following rules of organization and
operation::
(a) The Nominating Commission shall meet before any Board of Directors meeting at
which a proposal is to be put to the General Shareholders Meeting for the appointment,
removal from office, re-election or ratification of a Director and before any Board of
Directors meeting at which it is planned to co-opt a Director to cover a vacancy. The
Nominating Commission shall likewise meet whenever the Chairman considers it
necessary or when at least two members of the Commission so request.
(b) Meetings of the Nominating Commission will reach a quorum when a majority of
the members are present or represented. Its decisions shall likewise be adopted by a
majority of the members.
(c) The Chief Executive Officer shall provide the Nominating Commission with the
(d) The Commission shall have free access to any kind of information or documentation
held by or available to the Company that it considers necessary in order to perform its
duties.
(e) The Commission may require the collaboration of any Director, member of senior
management or employee of the Company and/or its group to enable it to better perform
its functions.
(f) Minutes of Nominating Commission meetings shall be taken and a copy shall be
sent to all the members of the Board and to the Board of Directors, sending the full
contents of the minutes of the Commissions meetings. Furthermore, the Chairman of
the Nominating Commission shall, if applicable, report on any decisions and/or
significant events that may have occurred at the Committee meetings at the first Board
meeting to take place after the Commission meeting in question.
In the absence of any specific rule, the provisions of the Board of Directors Regulations
shall be applicable to the Nominating Commission to the extent that they are not
incompatible with the nature thereof, in particular, the rules on calling the meetings,
delegating another Director as a representative, universal meetings, written ballots
without holding a meeting, the persons acting as chairman and secretary of the meetings
and the approval of the minutes thereof.
(Exhibit to section E.6. of the 2014 ACGR): Explain the response and supervision plans
for the companys main risks:
TAX POLICY
The Board of Directors of ZARDOYA OTIS, S.A. (the Company) must approve the
Companys tax strategy pursuant to article 529 ter of the Spanish Companies Law and
article 3 of the Companys Regulation of the Board of Directors. The Board of Directors
is also in charge of approving the tax risk management policy, and those investments or
transactions which are of particular relevance for tax purposes due to their high value or
characteristics.
In consideration of these functions, the Board of Directors approves this document which
sets out the tax strategy of the Company. The tax policy is part of the Companys
corporate governance policy.
1.
PURPOSES
The Companys tax policy is based on the timely compliance of the applicable tax
regulations, following their reasonable interpretation, according to their spirit and
purpose, and taking into consideration the legitimate interests at stake.
The ultimate purpose of the tax policy, at the same time as adequately defending the
companys interests, is to reduce tax risks, eliminate double taxation and reduce costs,
both in the short and long term.
The tax policy must be taken into consideration in decision-making.
2.
GUIDING PRINCIPLES
The Company shall take into account the following principles when implementing the tax
policy:
2.1
Regulatory compliance and reasonable interpretation of the rules
The Company shall comply with the tax regulations that apply in the countries in which it
operates on a timely basis; these rules shall always be applied according to their
reasonable interpretation, in order to minimise the risks, generate greater long-term value
and comply with the companys interests.
2.2
Prevention and mitigation of significant tax risks
The Company shall minimise all tax risks as far as reasonably possible given the complex
and changing nature of the tax matters.
2.3
Duty of trust and good faith towards the tax authorities
The Company shall seek to encourage good faith, cordiality, collaboration, trust,
professionalism, loyalty and reciprocity in its relationships with the tax authorities,
without prejudice to the legitimate defence of its points of view and the reasonable
interpretations implemented.
3.
BEST TAX PRACTICES
The Company shall carry out its activity in line with the following best practices:
(i)
Avoid investment structures that, in aiming to obtain illegal tax benefits, are
artificial, opaque or non-transparent.
(ii)
Do not use structures without valid economic reasons or relevant legal

consequences which exclusively intend to obtain illegal tax benefits.
(iii)
Avoid the use of tax havens to carry out business when the aim of the business is
to obtain illegal tax benefits.
(iv)
Do not carry out transactions with the sole purpose of eroding taxable bases or
shifting profits to countries with low taxes or none at all.
(v)
Apply transfer pricing policies according to the material and human resources of
the involved parties, the risks assumed, the functions and assets.
(vi)
Use the legal instruments for tax ruling requests provided in the law to determine
the applicable taxation.
(vii)
Encourage the adoption of the recommendations of the codes of best tax practices
developed by the countries in which the Company operates, provided that they
correspond to modern tax systems, are protected by good faith relationships
between the tax authority and the Company, and are consistent with the principles
established by the European Union and the OECD.
(viii) Collaborate with the competent tax authorities to detect and prevent fraudulent tax
practices in the markets in which the Company operates.
(ix)
Duly provide the information and documentation that is important from a tax
perspective and requested by the competent tax authorities.
(x)
Minimise the costs of compliance with formal tax obligations.
(xi)
Promote and encourage a fluid communication between the tax department and
other departments of the Company, in order to take into account the tax aspects
which are relevant for decision-making, process supervision and compliance
assessment.
4.
MANAGEMENT AND CONTROL
The Company shall define risk management and control procedures for the tax aspects of
its activity in an effort to try to ensure, in the framework of good business management,
compliance with the tax regulations and the principles and best practices of the Company.
For this purpose, an adequate number of material and human resources shall be assigned
to such activity.
The Audit Committee shall periodically provide the Board of Directors with reports on
the level of compliance with the tax policies and best tax practices, and shall inform the
Board of Directors when it adopts its corresponding decisions on defining the tax policy
and controlling tax risks.
5.
DIFFUSION AND UPDATE
The Directors and senior management of the Company shall promote the knowledge,
diffusion and application of the principles and best practices of the Companys tax policy.
The Company shall encourage that the principles and policies provided herein be adopted
by its entire group of companies, without prejudice to any limits that may be placed on
their applicability in foreign companies which are subject to their own regulations.
ZARDOYA OTIS, S.A.

Report of the auditors on Information relating to the
Financial Information of Internal control system (FIICS)
of Zardoya Otis, S.A. for 2014
This version of our report is a free translation of the original, which was prepared in Spanish.
All possible care has been taken to ensure that the translation is an accurate representation of
the original. However, in all matters of interpretation of information, views or opinions, the
original language version of our report takes precedence over this translation
REPORT OF THE AUDITORS ON INFORMATION RELATING

TO THE FINANCIAL INFORMATION OF INTERNAL CONTROL SYSTEM (FIICS)
OF ZARDOYA OTIS, S.A FOR 2014
To the Directors:
As requested by the Board of Directors of Zardoya Otis, S.A. (hereinafter, the Entity) and further to our
proposal dated 4 February 2015, we have applied certain procedures to the Information relating to
the FIICS included in section F of the Annual Corporate Governance Report (hereinafter, the
ACGR) of Zardoya Otis, S.A. for the financial year ended 30 November 2014, which summarises the
Entity's internal control procedures for annual financial information.
The Board of Directors is responsible for adopting suitable measures to reasonably guarantee the
implementation, maintenance and supervision of an adequate internal control system and
improvements to the system, and the preparation and definition of the content of the accompanying
Information relating to the FIICS.
It should be noted that, irrespective of the quality of design and functionality of the Entity's internal
control system in relation to its annual financial information, the system can only provide reasonable
assurance, but not absolute assurance, in connection with the objectives pursued, due to the
limitations inherent in all internal control systems.
In the course of our audit work on the annual accounts, and pursuant to Technical Auditing Standards,
our evaluation of the Entity's internal control was performed for the sole purpose of allowing us to
establish the scope, nature and timing of the audit procedures applied to the Entity's annual accounts.
Consequently, our appraisal of internal control, performed for the purposes of the audit of the
accounts, did not have a sufficient scope to allow us to issue a specific opinion on the effectiveness of
internal controls for regulated annual financial information.
In order to issue this report, we have applied exclusively the specific procedures described below and
indicated in the Guidelines of the Report of the Auditors on Information relating to the Financial
Information of Internal Control System of listed companies, issued by the National Securities Market
Commission (hereinafter, CNMV) on its website, which establishes the work to be performed, the
minimum scope of the work and the content of this report. As the work resulting from these
procedures has, in any event, a limited scope that is substantially less than that of an audit or a review
of the internal control system, we do not express an opinion on its effectiveness, or on its design and
operational efficiency, in connection with the Entity's financial information for the period 2014,
described in the accompanying Information relating to the FIICS. Consequently, had we applied other
procedures in addition to the ones stated in the Guidelines, or had we performed an audit or a review
of the internal control system in relation to regulated financial information, other facts or aspects
might have been detected and reported.
PricewaterhouseCoopers Auditores, S.L., Edificio Caja de Madrid, Avda. Diagonal, 640, 08017 Barcelona
T: +34 932 532 700 F: +34 934 059 032, www.pwc.com/es
R. M. Madrid, hoja 87.250-1, folio 75, tomo 9.267, libro 8.054, seccin 3.
Inscrita en el R.O.A.C. con el nmero S0242 - CIF: B-79 031290
Additionally, as this special work is not an audit of the accounts and is not subject to the revised Audit
Act introduced under Royal Decree-Law 1/2011 (1 July), we do not express an audit opinion in the
terms of these regulations.
The procedures applied are listed below:
1.
Reading and understanding of the information prepared by the Entity in relation to the FIICS
attached disclosure information included in the Directors Report -, and evaluation of whether or not
the information includes all the details required, following the minimum content described in section
F, on the description of the FIICS of the Annual Corporate Governance Report model as stipulated in
the Circular N 5/2013 of the CNMV dated June 12, 2013.
2.
Questions posed to personnel responsible for preparing the information indicated in point 1
above, in order to: (i) obtain an understanding of the preparation process; (ii) obtain information to
determine whether the terminology employed fits the definitions contained in the reference
framework; and (iii) obtain information on whether not the control procedures described are in place
and operational in the Entity.
3.
Review of the explanation documentation supporting the information indicated in point 1 above,
which will consist mainly of the documentation made available to the persons responsible for
preparing the FIICS descriptive information. This documentation includes reports prepared by the
internal auditors, senior management and other internal or external specialists performing audit
committee support functions.
4.
Comparison of the information indicated in point 1 above with the insight into the Entity's FIICS
obtained through the procedures performed during the audit of the annual accounts.
5.
Reading of minutes of meetings of the Board of Directors, Audit Committee and other Entity
committees in order to assess the consistency of the matters addressed in them in connection with the
FIICS and the information indicated in point 1 above.
6.
Obtainment of the letter of representation relating to the work performed, duly signed by the
persons responsible for preparing and issuing the information indicated in point 1 above.
As a result of the procedures applied to the Information relating to the FIICS, no inconsistencies or
incidents have been identified that could affect that information.
This report has been prepared solely in connection with the requirements established by Article 540 of
the revised text of the Corporations Act, and as stipulated in the Circular N 5/2013 of the CNMV
dated June 12, 2013 for the purposes of the description of the FIICS in Annual Corporate Governance
Reports.
PricewaterhouseCoopers Auditores, S.L.
Original Spanish version signed by Stefan Mundorf

18 March 2015
EXHIBIT 1
ANNUAL DIRECTOR COMPENSATION REPORT FOR LISTED CORPORATIONS
DETAILS IDENTIFYING ISSUER
DATE OF FISCAL YEAR END
TAX IDENTIFICATION CODE
11/30/2014
A-28011153
CORPORATE NAME
ZARDOYA OTIS, S.A.

REGISTERED OFFICE
GOLFO DE SALONICA, 73, MADRID
MODEL FOR ANNUAL REPORT ON DIRECTOR COMPENSATION

IN LISTED COMPANIES
A THE COMPANYS COMPENSATION POLICY FOR THE CURRENT YEAR
A.1 Explain the companys compensation policy. This section will include information on:
- The general principles and bases of the compensation policy.
- The most significant changes made to the compensation policy in comparison to the
policy applied in the preceding fiscal year, together with any changes made during the
year to the conditions for exercising previously-granted options.
- The criteria employed and the composition of the comparable groups of companies
whose compensation policies were examined in order to fix the companys
compensation policy.
- The relative importance of items of variable compensation in comparison to fixed items
and the criteria followed to determine the different components of the Directors
compensation package (compensation mix).
Explain the compensation policy
According to article 24 of the By-Laws and article 18 of the Board of Directors Regulations, the position of director of
Zardoya Otis, S.A. will be remunerated.
Said article 24 of the By-Laws fixes global remuneration (the By-Law stipulated compensation) consisting of a share of
1.5% of the consolidated profit after tax with the limit of 1% of the consolidated profit before tax. This amount can only be
taken from the liquid profit (after tax) after the legal reserves and the reserves provided for in the By-Laws have been
covered and a dividend of at least 10% of the paid-up share capital has been recognized in the shareholders favour.
This By-Law stipulated compensation will be distributed among its members in the manner freely determined by the Board
of Directors, depending on (i) whether they sit on any Board committees or other bodies; (ii) whether they hold specific
positions on the Board; (iii) their attendance of Board meetings; and/or (iv) their commitment to the service of the
Company.
Furthermore, article 18 of the Board of Directors Regulations establishes the principles or criteria that should be taken into
account when fixing the compensation of external directors. In particular, it states that this compensation will be the amount
deemed necessary to remunerate the commitment, abilities and responsibility required by the position, although it must not
be so high as to compromise their independence.
The director compensation policy has not changed in comparison with the preceding year, using solely the criteria
established in the aforementioned articles 24 of the By-Laws and 18 of the Board of Directors Regulations.
The items of compensation applicable to the Companys different types of director may be summarized as per the
following chart:
Executive director: No: 1; FC: YES; VC: YES; B-LC: N.A.; UTC LT IP: YES
External proprietary director: No: 6; FC: N.A.; VC: N.A.; B-LC: YES; UTC LT IP: N.A.
External independent director: No: 1; FC: N.A.; VC: N.A.; B-LC: YES UTC LT IP: N.A.
Other external director: No: 1; FC: N.A.; VC: N.A.; B-LC: YES; UTC LT IP: N.A.
No.=Number; FC=Fixed compensation; VC=Variable compensation; B-LC=By-Law stipulated compensation; UTC
LT IP=UTC long-term incentive program
Regarding the relative importance of the variable compensation items (as described in Section A.3 below) in comparison
with the fixed items, we must highlight the fact that, in 2014, the former represented 80.3% (78.8% in 2013) of the total.
The Board of Directors does not currently foresee any changes in the decision-making process when configuring the mix of
the director compensation in forthcoming years.
The criteria applied by the Company to establish its compensation policy are consistent with those generally employed by
other listed companies, as may be seen from the annual compensation reports of the Boards of listed companies
published by Spencer Stuart and the National Stock Market Commission, respectively.
In this respect, in line with the general trend towards keeping Board of Director compensation stable, we must highlight
that, for several consecutive years, the Board itself has decided to limit the total amount of the By-Law stipulated
compensation to 1,000 thousand euros, which is distributed among the directors in the usual way this is done in other
listed companies, i.e. in accordance with the responsibilities held by the directors and the time they devote to them.
Especially, the compensation system established with reference to the profit obtained by the Group and the dividends
received by shareholders (see Section A.1) is intended to favour the Companys long-term profitability and sustainability,
avoiding the acceptance of excessive risks.
A.2 Information on the preparatory work and decision-making process for determining the
compensation policy and the role played, if applicable, by the Compensation Commission
and other governing bodies in configuring the compensation policy. This information will
include, if applicable, the mandate and composition of the Compensation Commission and
the identity of any external advisors whose services were used to determine the
compensation policy. Likewise, the classification of any directors who participated in defining
the compensation policy must be stated.
Explain the process for determining the compensation policy
Article 3 of the Companys Board of Directors Regulations establishes, within the functions of the Board of Directors, the
approval of director compensation.
At November 30, 2014, the Company did not have a Compensation Commission. However, in compliance with the
provisions of the new article 529 quindecies of the Capital Companies Law, introduced by the recent Law 31/2014 of
December 3, whereby the Capital Companies Law was amended to improve corporate government, the Company plans to
expand the duties that have been being performed by the Nominating Commission to date, in order to include those provided
for in the aforementioned article 529 quindecies of the Capital Companies Law in relation to the compensation of the
members of the Companys Board of Directors.
In particular, said duties will include proposing the compensation policy for the directors or general managers or those
who carry out senior management duties reporting directly to the Board, executive commissions or the Chief Executive
Officer, as well as the individual compensation and other contractual conditions of executive directors, ensuring they are
met.
Additionally, during the year to which this report refers, the Company did not use the services of external advisors to
determine the compensation policy for its members and, therefore, it was the Board of Directors itself, with the
participation of all its members, that was responsible for designing, approving and implementing its compensation
policy.
A.3 State the amount and nature of the fixed components, with details, if applicable, of the
executive directors compensation for performing senior management duties, any
additional compensation for the chairman or members of any Board committees, the per
diem allowances for attending meetings of the Board and its committees, or any other fixed
compensation for directors, together with an estimate of the annual fixed compensation to
which the foregoing give rise. Identify any other non-cash benefits and the basic
parameters for granting them.
Explain the fixed components of the compensation
As stated in Sections A.1 and A.2 above, only Mr Bernardo Calleja Fernndez, the Companys Chief Executive Officer in
2014, received fixed compensation for carrying out executive duties. The fixed compensation, which, as stated in Section
D.1 below, was 192.5 thousand euros in the 2014 F.Y., does not include any guarantee or golden parachute clauses in
the event of dismissal, notice periods, non-competition, exclusivity, continuity or loyalty agreements, or any postcontractual non-competition agreement, other than those established in the applicable Spanish labour legislation.
Additionally, In September 2010, a Recharge Agreement was signed with United Technologies Corporation (UTC),
under which considers the possibility that certain Zardoya Otis executives who are also considered to be UTC Group
executives because they hold important management responsibilities should benefit, depending on their performance and
the attainment of joint objectives of Zardoya Otis, Otis and United Technologies Corporation (UTC), from the UTC longterm incentive plan, which includes compensation plans based on UTC shares. The incentive plan allows Zardoya Otis to
capture and retain highly-qualified members of management who provide important services to the Company and
contribute to its success. The agreement is applicable to incentives awarded as from December 1, 2010.
In the year to which this report refers, the effect of this plan for the directors represented a sum of 321.8 thousand euros
(77 thousand euros in 2013).
Lastly, the contribution to the defined-contribution pension plan that the Company holds for the Chief Executive Officer,
Mr Bernardo Calleja Fernndez, must be included in the fixed components of director compensation. In 2014, this was
41 thousand euros.
There is no extra compensation for holding the position of Chairman or belonging to Board committees or other bodies and
no per diem expenses are distributed for attending Board meetings or meetings of the Nominating Commission or Audit
Committee. Notwithstanding, these circumstances will be taken into account when distributing the By-Law stipulated
compensation, as stated in Section A.2 above.
A.4 Explain the amount, nature and principal characteristics of the variable components of the
compensation systems.
In particular:
- Identify each one of the compensation plans of which the directors are beneficiaries, the
scope thereof, its date of approval, its date of implementation, the term for which it is
in force and its main features. In the case of stock option plans and other financial
instruments, the general features of the plan must include information on the
conditions for exercising said options or financial instruments for each plan.
- State any compensation that originates from profit-sharing or bonuses and the reason
why it is awarded.
- Explain the basic parameters and grounds for any annual bonus system.
- The types of director (executive directors, external proprietary directors, external
directors, external independent directors or other external directors) that are the
beneficiaries of compensation systems or plans that include variable compensation.
- The basis of said variable compensation systems or plans, the criteria chosen for
evaluating performance and the evaluation components and methods used to
determine whether or not said evaluation criteria have been met, as well as an
estimate of the total amount of variable compensation to which the current
compensation plan would give rise, depending on the degree to which the
assumptions or objectives taken as a reference are met.
- If applicable, state the periods for which an already-established payment may be
deferred or delayed and/or the periods for which shares or other financial instruments,
if any, may be retained.
Explain the variable components of the compensation systems
As stated above, article 24 of the By-Laws fixes a compensation subject to certain quantitative limits, which is
subsequently distributed by the Board of Directors among its members on the basis of certain criteria.
In addition, we must highlight the fact that the Board of Directors adopted the following decisions at its meeting of July
29, 2014:
(A) To limit the total amount of the compensation stipulated in the By-Laws to 1,000 thousand euros;
(B) To delegate the distribution of the remuneration stipulated in the By-Laws among the Companys directors to the
Chairman of the Board, applying the following criteria: on (i) whether they sit on any Board committees or other bodies;
(ii) whether they hold specific positions on the Board; (iii) their attendance of Board meetings; and (iv) their commitment
to the service of the Company; and
(C) Payment, at the end of the first six months of 2014, of 500 thousand on account of the By-Law stipulated remuneration
The variable compensation for the Chief Executive Officer is based on performance and the attainment of joint
objectives of the Company, Otis and UTC and is calculated considering the operating profit and cash flow generated
each year. The variable compensation is payable the following year once the annual financial statements have been
approved by the Board of Directors.
Lastly, it is necessary to consider that:
(A) Regarding the types of director who benefit from the variable compensations systems, please see the chart
summarizing the applicable items of compensation in accordance with the classification of the Companys directors in
Section A.1 above, in relation to the applicable items of compensation in accordance with the Companys types of director.
(B) The basis of the variable compensation system and the methods for assessing performance used by the
Company to distribute it may be found in the aforementioned articles 24 of the By-Laws and 18 of the Board of
Directors Regulations.
(C) No periods of deferral or delay in payment of the compensation of the members of the Companys Board of Directors
have been established
A.5 Explain the principal features of the long-term saving systems, including retirement and any
other survivor benefits, financed fully or in part by the company, irrespective of whether the
provision is made internally or externally, with an estimate of the amount thereof or
equivalent annual cost, stating the type of plan, whether it Is a defined-contribution or
defined-benefit plan, the conditions under which the economic rights are consolidated in
favour of the directors and its compatibility with any kind of indemnity for early rescission or
termination of the contractual relationship between the company and the director.
Also state the contributions made in the directors favour to defined-contribution pension
plans or the increase in the directors consolidated rights in the case of contributions to
defined-benefit plans.
Explain the long-term saving systems
See Section A.3 above.
A.6 State any indemnities agreed or paid in the event that a director ceases to hold office as
such.
Explain the indemnities
Director compensation does not include any guarantee or golden parachute clauses, notice periods, or non-competition,
exclusivity, continuity or loyalty agreements, or post-contractual non-competition covenants or agreements in the event that
a director ceases to hold office as such.
A.7 State the conditions that must be observed by the contracts of those who perform senior
management duties as executive directors. Among others, information must be included on
the term, the limits on the amounts of any indemnity, continuity clauses, notice periods
and/or any other clauses relating to hiring bonuses, as well as indemnities or golden
parachutes for the early rescission or termination of the contractual relationship between
the company and the executive director. Include, among others, any no-compete,
exclusivity, continuity, loyalty or post-contractual non-competition clauses or agreements.
Explain the contract conditions of the executive directors
The compensation awarded to the executive director does not include any guarantee or golden parachute clauses in the
event of dismissal, notice periods, no-compete, exclusivity, continuity or loyalty clauses or agreements, or postcontractual no-compete clauses or agreements, other than those established in the applicable Spanish labour
legislation.
A.8 Explain any supplementary compensation accrued by the directors in consideration for the
services rendered other than those inherent to the position.
Explain the supplementary compensation
With the exception of the Chief Executive Officer, the only executive director of the Company, none of the other
members of the Board of Directors have rendered services to the Company other than those inherent to their
positions. Please see Section A.3 above regarding the specific characteristics of this supplementary compensation
received by the Chief Executive Officer.
A.9 State any compensation in the form of advances, credits, guarantees granted, mentioning
the interest rate, their basic features and any amounts that may be repayable, as well as
any obligations acquired on the directors behalf as a guarantor.
Explain the advances, credits and guarantees granted
As mentioned in Section A.4 above, the Board of Directors agreed the payment on account, at the end of the first six
months of 2014, of 500 thousand of the By-Law stipulated remuneration.
The Company has not awarded any compensation to the directors in the form of credits or guarantees on their behalf.
A.10 Explain the main features of any compensation in kind.

Explain the compensation in kind
The Company has not awarded any compensation in kind to the directors.
A.11 State any compensation accrued by a director due to the payments made by the listed
company to another company to which the director provides his/her services, when said
payments are intended to remunerate the directors services to the company.
Explain any compensation accrued by a director due to the payments made by the listed company to another
company to which the director provides his/her services
As shown in the chart included in Section D.1 below, some of the proprietary directors do not receive the above
mentioned By-Law stipulated compensation, which is, instead, received by Otis Elevator Company on their behalf.
A.12 Any other item of compensation apart from the foregoing, irrespective the nature thereof
or the group company that settles it, especially when it is classified as a related-party
transaction or payment thereof distorts the accurate picture of the total compensation
accrued by the director.
Explain the other items of compensation
No compensation items are settled by Group entities other than those explained above.
A.13 Explain the measures adopted by the company in relation to the compensation system in
order to reduce exposure to excessive risks and adjust it to the companys long-term
objectives, values and/or interests. This will, if applicable, include mention of: preventive
measures to ensure that companys long-term results are taken into account in the
compensation policy, any measures that establish an appropriate balance between the fixed
and variable compensation components, measures adopted in relation to those categories
of personnel whose professional activities have a material effect on the companys risk
profile, repayment formulas or clauses to enable the company to claim the return of any
results-based variable compensation components when said components were paid on the
basis of figures that have since clearly been shown to be inaccurate, and, if applicable
measures in place to avoid conflicts of interest.
Explain the actions adopted to reduce risks

The current composition of the Board of Directors (67% of its members are proprietary directors) guarantees that the
director compensation policy takes the results that should be obtained by the Company in the long term into account.
Thus, with the sole exception of the executive director, who receives additional fixed compensation for performing
executive duties in the Company, the compensation of the Board of Directors is variable in its entirety and, therefore, is
based on the Companys results. Furthermore, the quantitative limits contained in the Companys By-Laws and Board of
Directors Regulations help to necessarily link director compensation to the Companys best long-term interests.
In addition, the Group is studying the implementation of specific measures to:
(A) ensure the limitation of the risk in relation to those categories of personnel whose professional activities have a
significant impact on the entitys risk profile;
(B) allow the return of the variable results-based components to be claimed when such components have been settled on
the basis of data that have later been manifestly shown to be inaccurate; and
(C)
avoid conflicts of interest (derived from the Groups internal control system).
B COMPENSATION POLICY PLANNED FOR FUTURE YEARS

B.1 Explain the general plan for the compensation policy for future years that describes said policy
in respect of: fixed components, per diem allowances and variable compensation,
relationship between the compensation and the results, forecasting systems, contract
conditions of executive directors and plans for the most significant changes in the
compensation system in comparison with preceding years.
General compensation policy plan
The Companys Board of Directors has not, to date, considered reviewing the compensation policy established in article 24
of the By-Laws and article 18 of the Board of Directors Regulations for forthcoming years.
In the opinion of the members of the Board, the compensation policy that exists is the most appropriate, taking current
economic circumstances into account, combined with the principle of moderation that has always guided the compensation
policy applied by the Company. In this respect, the Board of Directors decision to limit the total amount of the By-Law
stipulated compensation to 1,000 thousand euros for the third consecutive year is particularly relevant.
Notwithstanding the foregoing, as a result of the changes made to the Capital Companies Law by Law 31/2014, the
Board of Directors may propose any changes it sees fit under best corporate governance practices for the approval
of the General Shareholders Meeting held in 2015.
At any event, in accordance with the Transitional Provision of Law 31/2014, if the 2015 General Shareholders Meeting
approves this report in a consultative ballot, the Companys compensation policy set forth herein will be deemed to have
been approved for the years 2016, 2017 and 2018.
B.2 Explain the decision-making process to configure the compensation policy planned for
future years and the role played, if applicable, by the Compensation Commission.
Explain the decision-making process to configure the compensation policy
As already indicated in Section B.1 above, the Board of Directors does not currently intend to review the compensation
policy. In the event that it were necessary to initiate a decision-making process to fix the compensation policy, the
procedure described in paragraph A.2 above would be followed
In this respect, we mention the fact that the Company plans to expand the duties that have been carried out to date by the
Nominating Commission, in order to include the duties set forth in article 52 quindecies of the Capital Companies Law in
relation to the compensation of the members of the Companys Board of Directors, including proposing to the Board of
Directors the compensation policy for directors, managing directors or those who carry out senior management duties
reporting directly to the Board, executive commissions or the Chief Executive Officer, as well as the individual
compensation and other contractual conditions of executive directors, ensuring they are met.
The foregoing does not affect any changes in the Companys compensation policy that may, if applicable, have to be
adopted in the future to adapt it to any changes there may be in the current composition of the Companys Board of
Directors.
B.3 Explain the incentives created by the company in the compensation system to reduce
exposure to excessive risks and adjust said system to the companys long-term
objectives, values and interests.
Explain the incentives created to reduce risk
Regarding incentives created by the Company in the compensation system to reduce risk exposure, please see Section
A.13 above.
C OVERVIEW OF THE IMPLEMENTATION OF THE COMPENSATION POLICY IN

THE YEAR ENDED
C.1 Summarize the main features of the structure and items of the compensation policy applied
in the year ended that gave rise to the details of the individual compensation accrued by
each one of the directors shown in section D of this report, as well as a summary of the
decisions made by the Board for application of said items.
Explain the structure and items of the compensation policy applied in the year
The following is a summary of the structure and items of the Companys director compensation policy in 2014, including
the amounts of the compensation relating to said year.
As stated above, the structure of the director compensation policy may be divided into: (i) those items of compensation that
comprise the fixed income received by the members of Companys Board of Directors (which is, at any event, only
applicable to the Chief Executive Officer), the main features and procedure for application of which are described in
Section A.3 above; (ii) the compensation stipulated in the By-Laws, the main features and procedure for application of
which are described in Section A.1 above; and (iii) any other items relating to variable compensation of the members of the
Board of Directors, the main features and procedure for application of which are described in Section A.4 above.
For further clarification, in addition to the chart describing the individual compensation accrued by each one of the
directors as set forth in Section D.1 below, the breakdown of the compensation by item (in thousands of euros) for the
years 2012, 2013 and 2014 may be summarized as follows:
Compensation: 2014 / 2013 / 2012
Fixed compensation: 192 / 174 / 194
Variable compensation: 90 / 68 / 166
By-Law stipulated compensation: 1,000 /
1,000 / 1,000
Cash compensation: 1,282 / 1,242 / 1,360
Other compensation: 363 / 126 / 145
TOTAL: 1,645 / 1,368 / 1,505
Proprietary
Proprietary
Proprietary
Proprietary
Proprietary
Proprietary
Independent
Executive
Proprietary
Proprietary
ANGELO MESSINA
LINDSAY HARVEY
PIERRE DEJOUX
EURO-SYNS S.A.
ALBERTO ZARDOYA ARANA
JOSE MARIA LOIZAGA VIGURI
BERNARDO CALLEJA FERNANDEZ
MARK GEORGE
PHILIPPE DELPECH
From 05/26/2014 hasta 11/30/2014.
From 02/26/2014 until 11/30/2014.
From 12/01/2013 until 11/30/2014.
From 12/01/2013 until 11/30/2014.
From 12/01/2013 until 11/30/2014.
From 12/01/2013 until 11/30/2014.
From 12/01/2013 until 11/30/2014.
From12/01/2013 until 04/08/2014.
From 12/01/2013 until 02/26/2014.
From 12/01/2013 until 11/30/2014.
From 12/01/2013 until 11/30/2014.
Accrual period fiscal year 2013
0
0
0
MARIO ABAJO GARCIA
Salaries
EURO-SYNS S.A.
Name
Cash compensation (in thousands of )
Fixed
compensation
Per Diem
200
200
50
Short term
Long term
Compensation
Variable
variable
for membership
compensation compensation of committees of
the board
a) Compensation accrued in the company to which this report refers:
Indemnities
Other items
200
200
50
Total
year
2014
200
200
50
Total
year
2013
D.1 Complete the following charts on the individual compensation of each one of the directors (including compensation for performing executive duties)
accrued during the year.
Other external
Classification
MARIO ABAJO GARCIA
Name
D DETAILS OF INDIVIDUAL COMPENSATION ACCRUED BY EACH DIRECTOR

192
Salaries
Name
Fixed
compensation
Per Diem
90
50
500
322
Short term
Long term
Compensation
Variable
variable
for membership
the board
Indemnities
41
Other items
645
50
500
Total
year
2014
10
368
50
500
Total
year
2013
Name
iii) Long-term saving systems
ii) Share-based compensation systems
41
F.Y. 2014
49
F.Y. 2013
Companys contribution for the F.Y.

(thousands of )
322
F.Y. 2014
274
F.Y. 2013
Amount of accumulated funds (thousands

of )
11
0
0
0
0
0
MARIO ABAJO GARCIA
iii) Long-term saving systems
ii) Share-based compensation systems
Salaries
EURO-SYNS S.A.
Name
i) Cash compensation (thousands of )
Fixed
compensation
Per Diem
Short term
Long term
Compensation
Variable
variable
for membership
the board
Indemnities
Other
compensation
b) Compensation accrued by directors of the company from sitting on Boards of Directors of other group companies
Total
F.Y2013
12
Total
F.Y.
2012
TOTAL
1,645
500
50
EURO-SYNS S.A.
50
200
200
MARIO ABAJO GARCIA
645
Total cash
Amount of
compensation
shares
awarded
Gross profit
on options
exercised
1,645
500
200
50
50
200
645
1,645
500
200
50
50
200
645
Gross
Total F.Y. Total F.Y.
2014
profit on 2014 Group
options
exercised
Compensation accrued in group companies
Total F.Y.
Total cash
Amount of
2014
compensation
shares
Company
awarded
Compensation accrued in the company
Name
In the case of long-term saving systems, the contributions or provisions made to systems of this nature must be included:
1,368
500
200
50
50
200
368
Total F.Y.
2013
Total
13
41
41
Contribution
to saving
systems in
the F.Y.
The summary must include the amounts for all the items of compensation included in this report that were accrued by the director, in thousands
of euros.
c) Summary of compensation (thousands of ):
D.2 Describe the relationship between the compensation obtained by the directors and the
results or other measurements of the companys performance, explaining, if applicable,
how variations in the companys performance may have affected the variation in the
directors compensation.
As indicated in Section A.13 above. The composition of the Board of Directors (67% of its members are proprietary directors)
guarantees that the director compensation policy takes the results that should be obtained by the Company in the long term
into account.
Thus, with the sole exception of the executive director, who receives additional fixed compensation for performing
executive duties in the Company, the compensation of the Board of Directors is variable in its entirety and, therefore,
based on the Companys results. Furthermore, the quantitative limits contained in the Companys By-Laws and Board of
Directors Regulations help to necessarily link director compensation to the Companys best long-term interests.
In addition, as mentioned in Section A.4 above, at its meeting of July 29, 2014, the Board of Directors unanimously
resolved to limit the total amount of the By-Law stipulated compensation to 1,000 thousand euros.
D.3 State the result of the consultative ballot at the General Shareholders Meeting on the
annual compensation report for the preceding year, giving the number of votes against, if
any.
Number
Votes issued
294,178,590
Number
% of total
70.34%
% of total
Votes against
22,868,508
7.77%
Votes in favour
271,216,895
92.19%
93,187
0.03%
Abstentions
E OTHER INFORMATION OF INTEREST

If there is any other important matter concerning director compensation that it has not been
possible to include in other sections of this report but that it is necessary to include to
provide more complete and substantial information on the companys compensation
structure and practices in relation to its directors, give a brief description thereof.
As further clarification of the charts in Section D.1(i) above, we add that the directors Mr Lindsay Harvey and Mr Angelo
Messina ceased to hold office before the end of the fiscal year to which this report refers.
This annual compensation report was approved by the Companys Board of Directors at its
meeting of February 24, 2015.
State whether any directors have voted against the approval of this report or abstained in
relation thereto.
Yes
No X
14
Consolidated text of the By-Laws of Zardoya Otis, S.A.
Regulations of the General Shareholders Meeting

of Zardoya Otis, S.A.
181
CONSOLIDATED TEXT OF THE BY-LAWS OF ZARDOYA OTIS, S.A.

SECTION I
NAME, DURATION, REGISTERED OFFICE AND CORPORATE
PURPOSE
Article 1. NAME
The name of the Company is ZARDOYA OTIS, S.A.
It is a business Company and shall be governed by these By-Laws and, alternatively, by the
Capital Companies Law (Ley de Sociedades de Capital) and other relevant legal provisions.
Article 2. DURATION
The duration of the Company has no definite time limit. It commenced its operations on the
date on which the public deed of incorporation was signed.
Article 3. REGISTERED OFFICE
The Company has its registered office in Madrid, Calle Golfo de Salnica 73, where its
effective center of administration and management is located.
The Company shall be entitled to establish branches, agencies or delegations, both in Spain
and abroad, by virtue of a resolution adopted by the Board of Directors, which shall also be
competent to decide to transfer the registered office within the same town and to eliminate or
transfer branches, agencies or delegations.
Article 3. (bis) CORPORATE WEBSITE
The Company will have a corporate website to provide shareholders with the mandatory
information and to disclose any relevant information required by the stock market legislation,
as well as to make available to shareholders and investors any other information deemed
appropriate or convenient. The corporate website will comply under all circumstances with
the requirements provided by the law.
The decisions on the amendment, relocation or elimination of the Companys corporate
website correspond to the Board of Directors. Such decisions must be recorded in the
Companys file with the relevant Commercial Registry and published in the Official Gazette of
the Companies Register, as well as on the Companys amended, eliminated or relocated
corporate website during the thirty days following the inclusion of the resolution.
Article 4. CORPORATE PURPOSE
The corporate purpose of the Company shall be:
a)
The manufacture, design and development, installation, repair, maintenance and sale
of engines, elevators, service elevators, platforms, escalators and moving platforms,
vertical evacuation sleeves, cable railways, automatic doors and garage doors, for any
use and with any characteristics whatsoever, the import and export of machinery and
equipment related to the foregoing, parts and components, previously assembled or
otherwise, and any equipment the purpose of which is to move people or objects. The
construction and assembly of metallic structures, building works and any other ancillary
works to the construction.
b)
The administration, promotion and management of industrial, agricultural, commercial

or service companies and the participation in companies that already exist or are newly
created, either through the management bodies or by holding shares or interests.
c)
The activities that comprise the corporate purpose may be carried on by the Company
indirectly, either totally or partially, by means of holding interests in companies with an
identical or analogous purpose.
SECTION II
CAPITAL STOCK, SHARES
Article 5. CAPITAL
The capital stock is 43,497,070.20 euros and is represented by a series of 434,970,702
ordinary shares with a par value of 0.10 euros each.
The shares are fully subscribed and paid up.
Article 6. SHARES WITHOUT VOTING RIGHTS
The Company shall be entitled to issue shares without voting rights under the conditions and
meeting the limits and requirements established by law.
The holders of non-voting shares shall be entitled to receive a minimum annual dividend of
5% of the capital paid up for each share without voting rights, to which the same dividend as
that corresponding to each ordinary share shall be added.
The foregoing is pursuant to the provisions of articles 98 et seq. of the Capital Companies
Law.
Article 7. INCREASE IN CAPITAL
The capital stock may be either increased or reduced in accordance with the General
Shareholders Meeting legally called for this purpose, pursuant to the provisions of articles
295 et.seq. of the Capital Companies Law.
Article 8. FORM OF THE SHARES AND THE SUBSCRIPTION, ACQUISITION AND
TRANSFER THEREOF
The shares shall be represented by account entries.
While the shares are listed on the Stock Exchange, the accounting records therefore shall be
kept by the Register of Securities and of the Clearing and Settlement of all trades (Sociedad
de Gestin de los Sistemas de Registro, Compensacin y Liquidacin de Valores, S.A. or
Iberclear) and the participating entities entitled to do so in the terms provided for in the
applicable securities market regulations.
The shares may be freely transferred by any of the means admitted by law.
Article 9. RIGHTS GRANTED BY THE SHARES
Each share confers the status of shareholder upon its legitimate holder. Those belonging to
the same class confer the same rights and duties in accordance with the provisions of the
Capital Companies Law.

In case of pledge over the Companys shares, the exercise of the voting rights shall
correspond to the pledgee, and the exercise of the economic rights shall correspond to the
shareholder. The usufruct, pledge and seizure of shares shall be governed by the provisions
of the Law.
SECTION III
THE COMPANYS BODIES OF MANAGEMENT
Article 10. MANAGEMENT AND REPRESENTATION OF THE COMPANY
The management and representation of the Company rest with the General Shareholders
Meeting and the Board of Directors, in accordance with the provisions of these By-Laws.
PART ONE
General Shareholders Meetings
Article 11. THE GENERAL SHAREHOLDERS MEETING
The General Shareholders Meeting is the assembly of shareholders, duly called and
constituted. Its resolutions shall be binding on all shareholders, including those who dissent
or are absent, without prejudice to the right to objection and actions granted to the
shareholders under the Act.
Article 12. TYPES OF GENERAL SHAREHOLDERS MEETING
General Shareholders Meetings may be either ordinary or special and must be called by the
Board of Directors.
An ordinary Shareholders Meeting shall necessarily be held once a year, within six months
from each fiscal year end.
A special Shareholders Meeting shall be held when so resolved by the Board of Directors or
at the request of shareholders representing at least 3% of the capital stock, the items to be
discussed at the Meeting being stated in the request.
Article 13. CALLS FOR MEETINGS
Both ordinary and special Shareholders Meetings shall be called by the Board of Directors
through the means of communication established by law, which include, at least, the
following: (i) Official Gazette of the Companies Register or one of the daily newspapers with
highest circulation in Spain; (ii) the website of the CNMV; and (iii) the website of the
Company.
A minimum period of one month must elapse between the announcement of the meeting
(ordinary or special) and the holding of meeting, except for special Shareholders Meetings
when the law establishes a shorter term, and provided that the legal requirements are
complied. Notwithstanding this, if shareholders representing at least 3% of the capital stock
have requested the Board of Directors to announce a special Shareholders Meeting, the
Board of Directors shall call this special meeting within two months from the date it was
requested to do so by means of a notarized document.
The notice of the meeting (whether ordinary or special) shall detail all the information that is
required by law as applicable, including the date, place and time of the meeting at first call,
as well as the detailed proposals of the resolutions to be adopted by the meeting and
included in the agenda. Likewise, it may state the date on which, if applicable, the meeting
shall be held at second call, with a minimum period of 24 hours between the first and second
calls.
Shareholders representing at least 3% of the Capital Stock may request the publication of an
addendum to the announcement of the General Shareholders Meeting, including one or
more additional items on the agenda, provided that each such item is accompanied by a
justification or a reasoned proposal for a resolution. However, this right cannot be used in
connection with special Shareholders Meetings. The mentioned shareholders may likewise
submit supported proposals relating to matters already included or that shall be included in
the agenda of the meeting called. These rights shall be exercised in accordance with the
requirements and time limits set out in the Law.
From the publication date of the notice of the meeting, until the holding of the next
Shareholders Meeting, the Company will make available on its website all the relevant
information for shareholders.
Notwithstanding the above provisions, a General Shareholders Meeting may be held without
the need for prior notice if all the paid-up capital stock is present and those present agree to
hold it.
Article 14. QUORUM
A General Shareholders Meeting (whether ordinary or special) shall be validly assembled at
first call when the shareholders present or represented hold at least 60% of the subscribed
capital with voting rights.
At second call, the Meeting shall be validly assembled when the shareholders present or
represented hold at least 50% of the subscribed capital with voting rights.
In order for the general or special Shareholders Meeting to resolve validly upon the capital
stock increase or reduction and any other amendment to the Companys by-laws, the
issuance of debentures, the suspension or limitation of pre-emptive rights of new shares, or
the transformation, merger, spin-off of the Company or the global conveyance of assets and
liabilities, or the relocation of the registered office abroad or, in general, any other
amendment in relation to which the law requires an increased majority, it will be necessary,
on first call, that the meeting be attended by shareholders present or represented owning at
least two thirds of the subscribed capital with voting rights. At second call, 50% of the paid up
capital shall suffice.
Article 15. ATTENDANCE AT THE MEETINGS
All shareholders may attend General Shareholders Meetings in person or may be
represented thereat by another person, who need not be a shareholder. Representation
must be conferred in writing specifically for each Meeting, in compliance with the applicable
legal requirements
The appointment of a representative by a shareholder and the notice of appointment
provided to the Company may be submitted by the following means of communication:
a) By written postal correspondence or by any other written means that, in the opinion of
the Board of Directors in an agreement previously adopted for this purpose, allows for
the faithful verification of the identity of the shareholder conferring its representation and
that of the representative or representatives appointed.
b) By any electronic means of communication that may be deemed suitable by the Board
of Directors insofar the chosen mean duly guarantees the validity of the representation
granted, the Shareholders recognition and the identification of the representative or
representatives appointed.
In any case, the Board of Directors is expressly entitled to expand the scope of the
foregoing provisions, establishing the instructions, rules, means and procedures to
document the granting of proxies by the remote means of communication it considers
appropriate in accordance with the state of technology at any time. Any implementing rules
adopted by the Board of Directors pursuant to the provisions hereof must be published on
the Companys corporate website.
Proof of ownership of the shares by means of a certificate from Iberclear or from the
participating entities entitled to do so, issued five days before the date of the Meeting, shall
be an essential requirement for attending the Meeting.
The directors must attend the General Shareholders Meetings. Managers, legal
representatives, technical personnel and any other persons who, in the opinion of the
Chairman of the Meeting, should be present thereat due to their interest in the correct
running of corporate matters may also attend. The Chairman of the Meeting may authorize, in
principle, the attendance of any other person he sees fit. The Meeting may, notwithstanding,
revoke this authorization.
Article 16. CHAIRMANSHIP OF THE MEETING, DELIBERATIONS AND ADOPTION OF
RESOLUTIONS
The Chairman of the Board shall chair the Shareholders Meeting or, in his absence, the
oldest Deputy Chairman will replace him/her or otherwise, the other Deputy Chairman or the
oldest among the other two Deputy Chairmen.
In the absence of the Chairman and Deputy Chairmen, the shareholder appointed for this
purpose by the Shareholders Meeting shall act as Chairman.
The Secretary to the Board shall act as the Secretary to the Shareholders Meeting. In his/her
absence, the person designated for this purpose by the Shareholders Meeting shall act as
Secretary.
Before commencing the Agenda, a list of those present shall be drawn up in the manner and
with the requirements set forth in the Act.
The Chairman shall lead the debate, granting the floor, in strict sequence, to all shareholders
who have so requested in writing and then to those who do so orally.
Each of the items on the Agenda, as well as those items that, even if they are included in the
same item of the Agenda are materially different, shall be put to a separate ballot so that the
shareholders can express their preferences in each case. This rule shall apply in particular
to:
a)
The appointment, ratification, re-election or removal of each director.
b)
Amendments to the by-laws, with votes taken on all articles or groups of articles that
have their own autonomy.
Resolutions shall be adopted by a simple majority of voting rights of the shareholders present
or represented at the Meeting. A resolution shall be understood to have been adopted when
more shareholders, either present or represented, vote in favor than against it.
Notwithstanding this, the favorable vote of two-thirds of the shareholders present or
represented at the General Shareholders Meeting is required to adopt the resolutions
contained in article 194 of the Capital Companies Law when, at second call, shareholders in
attendance represent twenty five per cent or more but less than fifty per cent of the paid up
and subscribed share capital with associated voting rights. If the shareholders present or
represented exceed fifty per cent, absolute majority shall suffice.
Article 16 (bis). DISTANCE VOTING
Any shareholder entitled to attend and vote may cast the vote on proposals relating to items
on the Agenda of a General Shareholders Meeting by any of the following remote means of
communication:
a) By written postal correspondence or by any other written means that, in the opinion of
the Board of Directors in a resolution previously adopted for such purpose, allows for
the faithful verification of the identity of the shareholder exercising his/her voting rights;
or
b) By any electronic means of communication that may be deemed suitable by the Board
of Directors insofar the chosen mean duly ensures the authenticity and the identity of
the shareholder exercising his/her vote as well as the security of electronic
communications.
A vote cast by any of the aforementioned means must be received by the Company at least
twenty-four hours prior to the date the General Shareholders Meeting is to be held on first
call. Otherwise, the vote will not be deemed to having been cast.
The Board of Directors is expressly entitled to expand the scope of the foregoing provisions,
establishing the instructions, rules, means and procedures to document the casting of votes
by the remote means of communication it considers appropriate in accordance with the state
of technology at any time. Any implementing rules adopted by the Board of Directors
pursuant to the provisions hereof must be published on the Companys corporate website.
Article 17. ATTRIBUTES AND COMPETENCIES OF THE GENERAL SHAREHOLDERS
MEETINGS
Ordinary General Shareholders Meetings shall be competent:
a)
To examine and approve, if applicable, the annual accounts, directors report and
proposed application of the profit or loss for the previous fiscal year, submitted by the
Board of Directors.
b)
To approve the management of the Company.
c)
To appoint account auditors.
d)
To approve the directors remuneration policy, as established by law.
In any case, decisions involving a fundamental corporate change should be submitted to the
General Shareholders' Meeting for approval and, in particular the following:
a)
The transfer of key activities to subsidiaries that were previously carried out by the
Company itself, even when the latter retains full control of the former.
b)
Any acquisition, disposal or transfer of key assets to other companies.
c)
Operations that effectively add up to the Company's liquidation.
For the purposes of this article, the key nature of the activities and assets shall be presumed
when the size of the transaction exceeds twenty five per cent of the total assets of the
balance sheet.
Any other matter reserved to the competency of the Shareholders Meeting, either by law or
under the provisions of the By-Laws, may be decided at an ordinary or special Shareholders
Meeting.
Article 18. MINUTES
The deliberations and resolutions of both ordinary and special Shareholders Meetings shall
be recorded in minutes drawn up in a special minute book and shall be signed by the
Chairman or Secretary or the persons who have acted as their substitutes. The minutes may
be approved by the Shareholders Meeting itself immediately after it has been held or, failing
this, within a term of fifteen days, by the Chairman and two auditors, one appointed by the
majority shareholders and the other by the minority.
The Board of Directors may, on its own initiative, if it thus decides, or obligatorily, when
shareholders representing at least 1% of the capital stock have so requested in writing using
reliable means at least five days prior to the date planned for holding the Meeting at the first
call, require the presence of a notary to make a record of the meeting, the fees of the Notary
chosen being payable by the Company. The notarys record shall be considered as the
minutes of the Meeting.
The resolutions adopted and the results of the voting in the Shareholders Meeting will be
published on the Companys website, within five days from the end of the Shareholders
Meeting.
SECOND PART
BOARD OF DIRECTORS
Article 19. BOARD OF DIRECTORS
The Board of Directors is the body responsible for directing, managing and representing the
Company, the foregoing without prejudice to the powers pertaining to the General
Shareholders Meeting.
Article 20. STRUCTURE OF THE BOARD
The Board of Directors shall consist of no less than three and no more than fifteen members.
The number of members shall be determined by the General Shareholders Meeting.
The Directors shall be elected by ballot pursuant to the rules established for this purpose in
the Act.
It is not necessary to be a shareholder in order to be a member of the Board.
Article 21. TERMS OF THE OFFICE OF DIRECTORS
Directors shall hold office for an initial term of four years. Directors may be re-elected for
successive periods up to a maximum of four years on each occasion by the General
Shareholders Meeting as many times as the latter sees fit.
Even though a directors term of office may have expired, he shall continue to discharge
his/her duties until the first General Shareholders Meeting is held.
Article 22. CALLS FOR BOARD MEETING, QUORUM, ADOPTION OF RESOLUTIONS
The Board shall meet whenever required by the interests of the Company and must meet
during the first three months of each fiscal year in order to draw up the annual accounts, the
directors report and the proposal for the application of the profit or loss for the prior year and
whenever it must call a General Shareholders Meeting. In any case, the Board of Directors
shall meet at least quarterly.
It shall be called by the Chairman, or the person acting in his/her stead, on his/her own
initiative or, in the cases to which the preceding paragraph refers or when one third of the
members of the Board has requested the calling of a meeting of the Board of Directors. In
this case, if the Chairman did not call the meeting within a term of one month without a
reasonable cause, the directors constituting at least one third of the Board of Directors, shall
be entitled to call it (on his/her behalf), and decide the agenda.
A Board Meeting shall be validly assembled if attended, either in person or duly represented,
by one half plus one of the members in office. Any director may confer, in writing, the power
to represent him at the Meeting on any other director. However, non-executive directors shall
only confer it to another non-executive director.
For resolutions to be adopted, the vote in favor of an absolute majority of the directors
attending the meeting shall be required, except in the cases of the permanent delegation of
any of the powers of the Board of Directors to the Executive Commission or to the Managing
Director, or the appointment of the directors who are to discharge such offices, when the vote
in favor of two thirds of the members of the Board shall be required.
The deliberations and resolutions of the Board shall be recorded in a minute book and each
of the minutes shall be signed by the Chairman and Secretary or those persons who
substitute them.
The Board of Directors shall meet at the Companys address, except if it is called to take
place in another location.
As an exception, if none of the directors opposes, resolutions may be passed in writing or by
videoconference or conference call.
Article 23. POWERS OF THE BOARD
The Board of Directors shall have the following powers:
a)
To appoint from among its members a Chairman and one or more Deputy Chairmen. It
shall also appoint a Secretary, who need not be a director.
b)
To call both the ordinary and special General Shareholders Meetings as and when this
may be in order, pursuant to these By-Laws, drawing up the Agenda and proposing
such motions as may be appropriate, in accordance with the type of Shareholders
Meeting called.
c)
To represent the Company in all administrative or judicial, civil, mercantile and criminal
matters and acts, before the State administration or any public agencies of all kinds, as
well as before any jurisdiction (ordinary, administrative, special, labor, etc.) and any
Court degree, taking actions of all kinds that pertain to the Company in defense of its
rights, in or out of court, conferring and executing the appropriate powers of attorney
upon court solicitors and appointing attorneys at Law to represent and defend the
Company before said courts and agencies.
d)
To direct and administer the Company business, permanently conducting the

management thereof. For this purpose, the Board shall lay down the rules of
government and the system for administering and running the Company, organizing
and regulating the technical and administrative services.
e)
To enter into all kinds of contracts concerning any kind of property or rights, under the
covenants and conditions that it may see fit, and to establish and cancel mortgages
and other liens or rights in rem on the Companys property, as well as to waive, against
payment or without it, all kinds of privileges or rights. It may likewise decide on the
participation of the Company in other undertakings or companies.
f)
To sign and to act on behalf of the Company in all kinds of banking transactions,
opening and closing current accounts, drawing cash therefrom, acting as drawer,
acceptor, guarantor, endorser, endorsee or holder of bills of exchange; to open lines of
credit, with our without guarantee, and to cancel them; to transfer funds, revenue,
credits or securities, using any procedure for the draft or remittance of moneys; to
approve settlements of final accounts, to create and withdraw deposits or bonds, to set
off accounts, to formalize exchanges, etc., all of which may be carried out at the Bank
of Spain or any private banking entities, or at any Agencies whatsoever of the State
administration.
g)
To appoint and dismiss any of the Companys personnel, assigning to them such
salaries and bonuses as may be appropriate.
h)
To appoint from among its members an Executive Committee or one or more Managing
Directors, and to delegate to them, pursuant to the Law, such powers as the Board may
deem advisable. It may also establish any committees and confer powers on any
persons whatsoever.
i)
To draw up and publish annually, as relevant facts, a report on the remuneration of

directors, including that received or to be received in their capacity as director and,
where applicable, for performing their executive functions, as well as the annual
corporate governance report.
j)
To establish its own operating procedure in all matters not specifically provided for by
law or by these By-Laws.
The powers of the Board of Directors include, but are not limited to, those listed above, the
Board being understood to hold all powers not expressly reserved to the Shareholders
Meetings.
Article 24. REMUNERATION OF DIRECTORS

Holding the office of director shall be remunerated.
An overall remuneration shall be fixed for all the members of the Board in such condition,
consisting of a share of 1.5% of the consolidated profit after tax with a maximum limit of 1%
of the consolidated profit before tax, which may only be taken from the net profit after the
legal and statutory reserve requirements have been met and a dividend of at least 10% of the
paid-up capital stock has been allocated to the shareholders. The subscription of civil liability
insurance in favor of the Companys Board members will be included within the
aforementioned maximum limit.
The aforementioned remuneration shall be distributed among its members in the manner
freely determined by the Board of Directors, depending on the functions and responsibilities
attributed to each director, the participation in committees of the Board of Directors, and any
other objective circumstances that the Board of Directors considers significant.
The remuneration of directors for carrying out executive functions established in agreements
approved in accordance with the Capital Companies Law shall be in line with the directors
remuneration policy. This policy must include the amount of the fixed annual remuneration
and its variation within the period covered by such policy, the different criteria used to
determine the variable items and the main terms and conditions of their contracts, including
specifically, their duration, compensation for early termination and non-competence
agreements, post-contractual non-competition covenants and permanence or loyalty
agreements.
The Board of Directors shall establish the remuneration of those directors who carry out
executive functions and the terms and conditions of their agreements with the Company in
accordance with the Capital Companies Law and the directors remuneration policy approved
by the General Shareholders Meeting.
The directors remuneration policy shall be submitted for the approval of the General
Shareholders Meeting at least every three years as a separate item on the agenda.
The proposal on the directors remuneration policy shall be reasoned and shall attach a
specific report issued by the Appointment and Remunerations Commission. Both documents
shall be available for the shareholders on the corporate website from the date on which the
General Shareholders Meeting is called. Shareholders may also request that both
documents be delivered and sent to them free of charge. The announcement of the calling of
the General Shareholders Meeting shall mention this right.
The directors remuneration policy shall be in force during the three fiscal years following the
approval of the policy by the General Shareholders Meeting. Any modification or substitution
of this policy within this period of time requires the prior approval of the General
Shareholders Meeting by following the same procedure as for its approval.
Article 24.bis AUDIT COMMITTEE
Composition
The Board of Directors will have a permanent Audit Committee composed of five members.
All the members of the Audit Committee shall be non-executive board members appointed by
the Board of Directors, at least two of whom shall be independent directors, and one shall be
appointed on the basis of his/her knowledge of and experience in accounting or auditing
matters, or both. The members shall be appointed for a term of four years and one of them
shall be appointed Chairman, who shall be an independent director. The Audit Committee
shall also have a Secretary, who need not be a board member, proposed by the Appointment
and Remunerations Commission.
Faculties
The Audit Committee shall have the powers conferred by law and by the Regulations of the
Board of Directors.
Rules of Operation
The Audit Committee shall act in accordance with the functioning and operational rules
established by law and by the Regulations of the Board of Directors.
Article 24 (ter). APPOINTMENT AND REMUNERATIONS COMMISSION
Composition
The Board of Directors shall have a permanent Appointments and Remunerations
Commission composed of five members. The Appointments and Remunerations Commission
shall be exclusively composed of non-executive directors appointed by the Board of Directors
and, at least two of them shall be independent directors. The Chairman of the Appointments
and Remunerations Commission shall be appointed from among the independent directors
forming the commission. The Board of Directors shall appoint a Chairman among its
members, who shall be an independent director, and the Secretary, who need not be a
director, shall be appointed by the Board of Directors and proposed by the Appointments and
Remunerations Commission.
Faculties
The Appointments and Remunerations Commission shall have the powers conferred by law
and by the Regulations of the Board of Directors.
Rules of Operation
The Appointments and Remunerations Commission shall act in accordance with the
functioning and operational rules established by law and by the Regulations of the Board of
Directors.
SECTION IV
FISCAL YEAR, ACCOUNTING DOCUMENTATION AND APPLICATION OF PROFIT
Article 25. FISCAL YEAR
The fiscal year shall begin on December 1 of each year and end on November 30 of the
following year.
Article 26. ACCOUNTING DOCUMENTATION
Within three months at the latest from the end of each fiscal year, the Board shall draw up the
annual accounts, the directors report and the proposal for the application of the profit or loss,
together with, if applicable, the consolidated accounts and directors report, pursuant to the
principles and criteria required by law.
These documents, which shall be signed by all the directors, expressly stating, if applicable,
the reason justifying the omission of the signature of any of them, shall be submitted for
review by the account auditor or auditors appointed in the manner, for the periods and with
the duties provided for in the Act to verify the annual accounts. When appointing the person
or persons who shall perform the audit, the Shareholders Meeting shall determine the
number thereof and the length of time over which they are to discharge their duties, which
may not be less than three years or more than nine, as from the date on which the first fiscal
year to be audited commences.
Article 27. FILING AND PUBLICATION OF ANNUAL ACCOUNTS
When the Annual Accounts, the Directors Report and the Application of the Profit or Loss
have been approved by the General Shareholders Meeting, they shall be submitted for filing,
together with the certification of the resolutions of the Shareholders Meeting as well as any
other appropriate documentation, at the Companies Registry pertaining to the registered
office, in the manner, within the term and pursuant to the provisions laid down in the Law and
the Companies.
Article 28. APPLICATION OF THE PROFITS
The net profit of the Company shall be applied as follows:
a)
The amount required for payment of Corporate Tax and of those taxes levied on the
Companys profits prior to their distribution to shareholders.
b)
The amount necessary to set up the reserves required by law or such voluntary
reserves as the Shareholders Meeting may see fit.
c)
The remainder is freely available to the shareholders, who will decide as to the use to
be made of it.
SECTION V
DISSOLUTION AND LIQUIDATION
Article 29. DISSOLUTION

The Company shall be dissolved in the cases provided for in the Act.
Article 30. SYSTEM FOR LIQUIDATION
Once the General Shareholders Meeting has resolved to dissolve the Company, the
Shareholders Meeting unless the Company provides otherwise, those who were directors at
the time of dissolution of the Company, shall become liquidators.
Without prejudice to the provisions of the preceding paragraph, shareholders representing at
least one twentieth of the capital stock or, if applicable, the committee or committees of
creditor-liquidators may request the Commercial Court Judge (Juez de lo Mercantil)
pertaining to the registered office to appoint a receiver with the requirements and powers
established by the Act.
The Shareholders Meeting shall retain the same powers as those it holds during the
Companys normal operations throughout the liquidation period and shall, in particular, be
authorized to approve the accounts and final liquidation balance sheet.
Article 31. RULES FOR LIQUIDATION
The rules established in the Act shall be complied with in the liquidation of the Company.
REGULATIONS OF THE GENERAL SHAREHOLDERS MEETING OF ZARDOYA

OTIS, S.A.
ARTICLE 1. PURPOSE AND DISTRIBUTION OF THE REGULATIONS
These Regulations are intended to regulate the General Shareholders Meeting of
ZARDOYA OTIS, S.A. (the Company), the sovereign corporate body, through which
the shareholders right to take part in the making of the Companys essential decisions
is organized, establishing the principles for preparing the Meeting, information relating
thereto, the calling thereof, the manner in which it is conducted and the rules that
govern its activity by law and in the by-laws, and the applicable discipline set forth in
current mercantile legislation and in the Company by-laws is completed.
The Board of Directors shall adopt any measures that may be necessary to ensure the
distribution of the provisions of these Regulations among the shareholders and the
investor public and, for this purpose, shall publish them on the Companys web page.
ARTICLE 2. EFFECTIVE DATE OF THE REGULATIONS
These Regulations shall be applicable as from the first General Shareholders Meeting
held after they have been approved.
ARTICLE 3. TYPES OF GENERAL SHAREHOLDERS MEETING
Ordinary General Shareholders Meeting
The Ordinary General Shareholders Meeting shall be held within the first six months of
each financial year in order to:
a)
Opine on the corporate management.
b)
Approve, if applicable, the accounts for the previous year.
c)
Resolve on the application of the profit/(loss).
d)
Appoint the Companys auditor.
Likewise, the Ordinary Shareholders Meeting may adopt resolutions on any other
matters that are submitted for its consideration.
Extraordinary General Shareholders Meeting
Any General Shareholders Meeting that differs from the above shall be considered
Extraordinary.
ARTICLE 4. CALLING THE GENERAL SHAREHOLDERS MEETING
General Shareholders Meetings (whether Ordinary or Extraordinary) will be called by
the Board of Directors through the means of communication established by law, which
include, among others: (i) the Official Gazette of the Commercial Registry or one of the
most widely circulated daily newspapers in Spain, (ii) the Securities and Exchange
Commissions (CNMV) website for which purposes a copy shall be sent to the CNMV
and the Stock Exchange Governing Company, and (iii) the Companys website, so that
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the shareholders have sufficient time to request and obtain supplementary information
in relation to the items on the agenda.
The Meeting (whether Ordinary or Extraordinary) will need to be called at least one
month in advance, except for Extraordinary General Shareholders Meetings when the
law allows for a shorter period and provided that in this latter case all applicable legal
requirements are met.
The notice of the Meeting (whether Ordinary or Extraordinary) will include all the
requirements established by law, including the Companys name, the date, place and
time of the Meeting on the first call, the agenda containing the matters to be discussed
and the date on which the shareholders must have their shares registered in order to
attend and vote in the General Shareholders Meeting. It will also state how and where
a full copy of the resolutions and the proposals of resolutions can be accessed, the
website of the Company in which the information will be available, and the position of
the person(s) calling the Meeting. The notice will contain clear and precise information
of the procedures that shareholders must comply in order to be able to participate and
to cast their vote in the General Shareholders Meeting, including all the requirements
established by law. The notice of the Meeting may also indicate the date and time at
which the Meeting will be held on second call, provided that there will be a minimum
period of twenty-four hours between the first and second call of the Meeting.
The Board shall call an Extraordinary General Shareholders Meeting when a number
of shareholders that hold at least three per cent of the capital stock so request, stating
the matters to be discussed in their request. In this case, the Meeting shall be called to
be held within the two months following the date on which the request, through a
notary, was made to the Board of Directors to call it. In this case, the Board of Directors
shall draw up the agenda, and shall include as items of such agenda the matters
included in the shareholders request.
Notwithstanding the provisions of the preceding paragraphs, a General Shareholders
Meeting may be held to adopt resolutions on any matters without any prior notice if all
the paid-up capital stock is present or represented and agrees to hold the Meeting.
ARTICLE 5. SHAREHOLDER RIGHTS
The Company will ensure at all times that all shareholders who are in the same position
are treated equally with regard to information, participation and the exercise of voting
rights in the General Shareholders Meeting.
Shareholder participation rights
Shareholders holding, at least, three per cent of the capital stock may request the
publication of an addendum to the agenda of the Ordinary General Shareholders
Meeting, in order to include one or more items on the notice of the General
Shareholders Meeting provided that such added items are accompanied by a
justification or a reasoned proposal for a resolution. However, this right cannot be
exercised in connection with Extraordinary General Shareholders Meetings.
This right shall be exercised by means of written notice which shall be received at the
Companys registered office within the five days following the date on which notice of
the Meeting is published. The addenda to the notice of the General Shareholders
Meeting shall be published at least fifteen days before the date on which the Meeting is
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to be held. The failure to publish this addendum within the period established by law
will be a cause for challenging the General Shareholders Meeting.
Shareholders representing at least three per cent of the share capital may submit,
during the aforementioned period, additional proposals relating to matters already
included or that will be included on the agenda of the Meeting called. The Company will
ensure that these proposals of resolutions and any documentation attached, if
applicable, is distributed among the remaining shareholders, in accordance with the
law.
Shareholder information rights
Provision of information to shareholders: As from the publication date of the notice of
the Meeting, until the holding of the following General Shareholders Meeting, the
Company will make available on its website all legally required information, including,
at least, the following:
a)
The notice of the Meeting.
b)
The total number of shares and voting rights on the date of the notice of the
Meeting, broken down by types of shares, if applicable.
c)
The documents to be submitted to the General Shareholders Meeting, and, in

particular, any directors reports, auditing reports and independent experts
reports. When an Ordinary General Shareholders Meeting is called, the
following documents will be included, in any event: the Companys annual
accounts, the consolidated accounts and the proposal for application of the
profit/(loss) for the year, the Companys management report and the
consolidated management report, and the audit reports on the consolidated
annual accounts and the annual accounts of the Company.
d)
Full text of the proposals of resolutions regarding all points of the Agenda or,
regarding those points which are strictly informative, a report of competent
bodies or of any other Committees set up within the Board of Directors,
discussing each of the items on the agenda. If and when they are received, any
proposals of resolutions made by the shareholders will also be included.
e)
In case of appointment, ratification or re-election of members of the Board of

Directors, the identity, rsum and category to which they belong, as well as the
proposal and reports required in accordance with the law. If it is a legal person,
the information must include the relevant information regarding the natural
person appointed to perform the duties inherent to such position.
f)
The forms to be used for proxy and distance voting, unless when they are
submitted by the Company directly to each shareholder. The Company shall
indicate on its website how to obtain the paper forms if they cannot be
published on the website for technical reasons. In such a case, paper forms
must be submitted to any shareholders who request them.
g)
Any other information that may be required by law, or which the Board of
Directors decides to publish in the Companys website.
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On the day of the Meeting, the shareholders shall be provided with the necessary
documentation at the place of the Meeting.
Shareholders requests for information: Up to the fifth day before the date on which the
Meeting is to be held, shareholders may request the Board of Directors, in relation to
the items included on the agenda, any information or clarification they deem necessary,
or may pose any questions in writing that they deem appropriate.
Likewise, shareholders may request from the Board of Directors in writing until the fifth
day prior to the date set for the Meeting, or verbally during the Meeting, any
clarifications that they deem necessary concerning the information available to the
public that the Company has provided to the CNMV since the date of the last General
Shareholders Meeting and in relation to the auditors report.
The valid information requests, clarifications and questions in writing as well as the
relevant written answers provided by the directors, shall be uploaded to the Companys
corporate website.
The Board of Directors shall be obliged to provide the above information in writing up to
the day of the General Shareholders Meeting.
During the General Shareholders Meeting itself, shareholders may orally request any
information or clarification that they deem appropriate in relation to the items included
on the agenda. If the information requested cannot be provided at the General
Shareholders Meeting itself, the Board of Directors shall send such information in
writing within the seven days after the General Shareholders Meeting took place.
The Board of Directors shall send the information requested pursuant to the preceding
paragraphs unless such information is unnecessary for the protection of the
shareholders rights, there are reasonable grounds to consider that the information
might be used for non-corporate purposes, or its publicity might damage the Company
or its related companies.
Before specific questions are made, when the requested information is available for all
the shareholders on the Companys website, in a Q&A format, clear, direct and
explicitly, the Board of Directors might limit its answers making reference to the
information provided in such format.
However, information shall not be denied when the request is supported by
shareholders who represent at least a quarter of the capital stock.
Shareholders right of attendance
Shareholders who prove that they are such by means of a certificate issued, five days
prior the date of the Meeting, by the Sociedad de Gestin de los Sistemas de Registro,
Compensacin y Liquidacin de Valores, S.A. Unipersonal (Iberclear), or by the
participating entities authorised for this purpose, may attend the Meeting.
Shareholders must request from Iberclear, or the participating entity authorised for this
purpose, a certificate of ownership or an equivalent document, together with the card
required to attend the General Shareholders Meeting, which must be in registered
form.
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The Company shall begin to register the attendance cards at least two hours before the
time fixed for the Meeting.
Company directors must attend the General Shareholders Meetings.
ARTICLE 6. REPRESENTATION
All shareholders who are entitled to attend may be represented at the General
Shareholders Meeting by another person, who need not be a shareholder.
Representation must be conferred in writing for each specific Meeting and will be
subject to the terms, conditions and limitations established by law.
The appointment of the representative by a shareholder and the notice of appointment
provided to the Company will only be deemed valid if the grant is made:
a)
By written postal correspondence sent to the address indicated by the Company

for this purpose, containing the legitimacy certificate or equivalent document,
together with the attendance, representation and voting card issued by Iberclear
(or the authorized participant entity) duly signed and filed by the shareholder, or
by any other written means that, in the opinion of the Board of Directors in an
agreement previously adopted for this purpose, allows for the faithful verification
of the identity of the shareholder conferring its representation and that of the
representative or representatives appointed.
b)
By any electronic means of communication that may be deemed suitable by the

Board of Directors insofar the chosen means duly guarantees the validity of the
representation granted, the shareholder recognition and the identification of the
representative or representatives appointed. The representation granted by any
such means will be accepted if the electronic document by means of which the
representation is conferred contains a recognized digital signature or advanced
digital signature of the shareholder being represented, as defined by applicable
law. The user certificate must be obtained by the shareholder free of charge for
the Company and must be in force in the moment the shareholder confers his/her
representation. Any shareholder with a digital signature complying with the
aforesaid requirements that identifies himself/herself by these means, may confer
his/her representation in compliance with the instructions and procedures
specified on the Companys corporate website, which will make available the
appropriate forms to that end.
In order to be valid, a representation granted by any of the foregoing means of remote

communication must be received by the Company before 12:01 AM the day before the
date on which the Shareholders Meeting is going to be held on first call. Any
shareholder conferring representation is obliged to communicate to the appointed
representative the representation conferred.
Should the shareholder be a legal person, it must also simultaneously submit notarial
certification of the power of attorney by means of which the capacity of the person
conferring representation through remote postal or electronic means is granted.
Should any shareholder confer representation by postal correspondence or remote
electronic correspondence in favor of the Company, to the Board members or the
Secretary, but such representation does not include voting instructions or questions
arise as to the intended representative or the scope of the representation it shall be
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deemed that: (i) the representation is conferred in favor of the President of the Board of
Directors and, if the President is subject to a conflict of interest and, unless expressly
otherwise stated, in favor of the Vice-president of the Board of Directors; (ii) it refers to
all the items included on the agenda of the call to the General shareholders Meeting;
(iii) contains the instruction to vote favorably on all proposals made by the Board of
Directors; (iv) and also extends to matters that, although not provided for on the
agenda of the call of the meeting, may be addressed at the General Shareholders
Meeting, in respect of which, the representative shall cast the vote as he/she considers
most favorable to the interests of the shareholder conferring the representation.
On the date and at the place of the General Shareholders Meeting, the appointed
representatives must identify themselves by providing their national identification card
(D.N.I.) or Passport, in force, in order to allow the Company to verify the representation
conferred in their favor, together with, if necessary, a copy of the delegation and the
notarial certification of the power of attorney. The representative may only cast the vote
of the represented person by physical attendance to the General Shareholders
Meeting,
The representation conferred by these means may be revoked: (i) by Shareholders
express revocation made by the same means as the used to confer the representation,
within the period of time to confer it; (ii) by the personal attendance of the shareholder
at General Shareholders Meeting; (iii) by the transfer of the shares whose ownership
grants the right to representation and voting as acknowledged by the Company at least
five days prior to the expected date of the General Shareholders Meeting.
Representations conferred after the distance vote is cast will not be deemed as
conferred.
A representative may have representations conferred by more than one shareholder,
with no limits on the number of representations.
Similarly, entities that appear to be shareholders as a result of the accounting record of
shares but act on behalf of several people might divide their vote and cast their vote
differently as per the voting instructions received. Such intermediary entities might
delegate the vote to indirect holders or third parties designated by them. No limitations
should apply regarding the number of delegations granted.
ARTICLE 7. QUORUM
General Shareholders Meetings (Ordinary or Extraordinary) will meet the quorum in
order to be validly held on the first call when the shareholders, present or represented,
hold at least 60% of the subscribed capital stock with voting rights.
On the second call, the Meeting will be validly held when the shareholders, present or
represented, hold at least 50% of the capital stock with voting rights.
In order for a General Shareholders Meeting (Ordinary or Extraordinary) to validly
resolve on a capital increase or reduction and any other amendment to the Companys
by-laws; the suspension or limitation of pre-emptive rights of new shares; the issuance
of bonds; the conversion, merger, spin-off of the Company; the global assignment of
assets and liabilities; and the relocation of the registered office abroad; two thirds of the
subscribed capital with voting rights must be present or represented on the first call. On
the second call, it will be sufficient for half said capital to be attending the Meeting.
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ARTICLE 8. THE PRESIDING COMMITTEE OF THE GENERAL SHAREHOLDERS

MEETING
The presiding committee of a General Shareholders Meeting will be formed by the
members of the Board of Directors.
It will be chaired by the Chairman of the Board of Directors or, in his absence, the
longest serving Deputy Chairman or, in his absence, the other Deputy Chairman or the
longest serving Deputy Chairman of the other two Deputy Chairmen.
The Chairman will be assisted by a Secretary, who will be the Secretary to the Board of
Directors. In the absence thereof, the person designated by the shareholders at the
beginning of the Meeting will act as Secretary.
The Chairman will conduct and establish the order of the deliberations and speeches;
decide the manner in which votes will be taken on the resolutions; resolve any doubts,
clarifications or claims that are raised in relation to the agenda, the list of those
attending, ownership of the shares, delegation or representation and the requirements
for the Meeting to be held validly and pass resolutions, or on any limit on voting rights
established in the by-laws.
ARTICLE 9. LIST OF THOSE ATTENDING AND OPENING OF THE GENERAL
SHAREHOLDERS MEETING
Before starting the discussion of the items on the agenda, a list of those present shall
be drawn up, stating the capacity in which each one of them is present or whom they
represent, and the number of shares, owned by the shareholder or by a third party, with
which they attend.
At the end of the list, as a summary, the number of shareholders present or
represented shall be stated, together with the amount of capital that they hold,
specifying the capital belonging to shareholders with voting rights.
The list of those attending the Meeting may also be drawn up in a file or placed on a
computer medium. In these cases, the medium used will be stated in the minutes and
the appropriate identification, signed by the Secretary with the Chairmans approval,
will be placed on the sealed cover of the file or computer medium. Once the list of the
shareholders attending the Meeting has been closed, those absent or, if applicable,
their representatives, may attend the Meeting but will not be included in the list of
attendants, without the approval of the Chairman of the Meeting.
Once the Meeting has commenced, the Secretary will read the information on the
notice of the meeting and will inform on the attendance on the basis of the list of those
attending the Meeting. In light of the list of those attending the Meeting, the Chairman
shall, if appropriate, declare the Meeting duly constituted.
ARTICLE 10. DELIBERATION AND ADOPTION OF RESOLUTIONS
Deliberation
At an Ordinary General Shareholders Meeting, the Chairman will inform on the most
relevant aspects of the year and the Boards proposals. His explanations may be
completed by the persons he authorizes. The Chairman of the Audit Committee or, if
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applicable, of any of the other Committees or, in his absence, any other member of the
Audit Committee or of other Committees, shall be available to answer any questions
that the shareholders may raise thereat on matters which are within the powers of the
Meeting.
When the appropriate explanations have concluded, the Chairman will allow the
shareholders who have so requested to speak, conducting and coordinating the debate
and seeking to follow the established agenda, except as provided for in articles 223
and 238 of the Capital Companies Law.
The Chairman shall conclude the debate when, in his opinion, the matter has been
sufficiently debated and will then submit, to a vote the motions for a resolution, which
will be read by the Secretary.
Each of the items that forms part of the agenda and any matters that notwithstanding
being part of the same item of the agenda are materially different, shall be put to a
separate vote, so that the shareholders can express their preferences in each case.
This rule shall apply in particular to:
a)
The appointment, ratification, re-election or removal of each of the directors,

which must be voted separately.
b)
Amendments to the by-laws, with votes taken on all articles or groups of articles
that are independent from each other.
c)
Any other issues set forth in the by-laws.
At the Chairmans decision, the motions may be read in an abridged manner, provided
that the shareholders who represent a majority of the subscribed capital with voting
rights present or represented at the Meeting do not object.
Using his right to order the manner in which the Meeting is conducted, the Chairman
may, without prejudice to other actions:
a)
Extend, when he sees fit, the time initially assigned to each shareholder, which,
unless expressly stated otherwise, may not exceed five minutes.
b)
Ask the speakers to clarify questions that have not been understood or have not
been sufficiently explained during their speech.
c)
Ask the shareholders who speak to restrict their speeches to matters pertaining
to the Meeting and to refrain from making inappropriate statements or using their
right in an abusive or obstructive manner.
d)
Inform the speakers when the time allotted to them is near to the end, so that
they can adapt their speech and, when the time allowed for the speech has
ended or if they persist with any of the conducts described in point (c) above, he
may prevent them from continuing.
e)
If he considers that their speech may alter the appropriate order and normal
evolution of the Meeting, instruct them to leave the premises and, if applicable,
adopt the measures required for this order to be met.
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Voting
Each share shall give the right to one vote in the terms established in the by-laws.
If the shareholder is represented by another person in accordance with the
requirements set out by law, the representative will issue the vote according to the
instructions received from the shareholder and must keep these instructions for one
year as from the holding of the Meeting.
When a representative represents several shareholders, he/she may issue votes in a
different direction, pursuant to the instructions received from each of the represented
shareholders.
In addition, entities that appear to be shareholders on the basis of the accounting
record of shares, but acting on behalf of several people might divide their vote and
exercise the vote in a different direction as per the voting instructions received. Such
intermediary entities might delegate the vote to the indirect holders or to third parties
designated by them. No limitations should apply regarding the number of delegations.
The Company will establish for each resolution put to vote at the Meeting, at least: the
number of shares for which votes have been validly cast, the proportion of the share
capital represented by those votes, the total number of votes validly cast as well as the
number of votes cast in favour of and against each resolution and, where applicable,
the number of abstentions.
The votes shall be noted by the Secretary individually for each of the items on the
agenda. The Secretary shall deliver the list with the result of the vote on each motion to
the Chairman.
Distance voting
Any shareholder entitled to attend and to vote may cast the vote on proposals relating
to items on the Agenda of a General Shareholders Meeting by any of the following
remote means of communication:
a)
By written postal correspondence sent to the address indicated by the Company

for this purpose, containing the legitimacy certificate or equivalent document,
together with the attendance, representation and voting card issued by Iberclear
(or the authorized participant entity) duly signed and filed by the shareholder, or
by any other written means that, in the opinion of the Board of Directors in a
resolution previously adopted for such purpose, allows for the faithful verification
of the shareholder exercising his voting rights.
b)
By any electronic means of communication that may be deemed suitable by the

Board of Directors insofar the chosen means duly ensures the authenticity and
the identity of the shareholder exercising his/hers vote as well as the security of
electronic communications. The vote casted by such means will be accepted if
the electronic document by means of which the right to vote is exercised includes
the recognized digital signature or advanced digital signature of the shareholder,
as defined by applicable law. The user certificate must be obtained by the
shareholder free of charge for the Company and must be in force in the moment
the shareholder casts the vote. Any shareholder with a digital signature
complying with the aforesaid requirements that identifies himself/herself by these
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means, may cast his/hers vote regarding the items of the General Shareholders
Meeting in compliance with the instructions and procedures specified on the
Companys corporate website, which will make available the appropriate forms to
that end.
Should the shareholder be a legal person, it must also simultaneously submit notarial
certification of the power of attorney by means of which the capacity of the person
casting the distance vote is granted and communicate to the Company any change or
revocation of the faculties granted to the representative and, therefore, the Company
denies any responsibility until such communication is delivered.
Shareholders casting their distance votes by the means contained in this article will be
deemed as present for the purposes of constitution of the General Shareholders
Meeting. As a consequence, representations conferred previously will be deemed
revoked and the ones conferred after will be deemed as not made.
A distance vote may only be revoked: (i) by the Shareholders express revocation
made by the same means as the used to cast it, within the period of time to cast it; (ii)
by the personal attendance of the shareholder at General Shareholders Meeting or a
representative of him; (iii) by the transfer of the shares whose ownership grants the
right to vote as acknowledged by the Company at least five days prior to the expected
date of the General Shareholders Meeting.
A vote cast by any of the aforementioned means must be received by the Company at
least twenty-four hours prior to the date the General Shareholders Meeting is to be
held on first call. Otherwise, the vote will not be deemed to having been cast.
The Board of Directors is expressly entitled to expand upon the scope of the foregoing
provisions, establishing the instructions, rules, means and procedures according to the
state of art to document the casting of votes by the remote means of communication it
considers appropriate, in accordance with Law regulating this system and with what is
established in the Companys by-laws and in this General Shareholders Meeting
Regulations. Any implementation rules adopted by the Board of Directors pursuant to
the provisions hereof shall be published on the Companys corporate website.
The Board of Directors, in order to avoid possible duplicities, will adopt necessary
measures to ensure that who has cast the vote and conferred representation is dully
legitimated according to the company by-laws and these General Shareholders
Regulations.
Conflict of interests
A shareholder shall not exercise the voting rights associated to his/her shares when the
resolution to be agreed refers to one of the following actions:
a)
To discharge him/her from his/her obligations or to grant him rights;
b)
To provide him/her with any kind of financial assistance, including guarantees;

and
c)
To discharge him/her from his/her obligations arising from his/her loyalty duty
pursuant to the provisions contained in the law.
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The shareholders shares involved in any situation of conflict of interest shall be

deducted from the share capital for the calculation of the required majority necessary in
each situation.
In any other cases of conflicts of interest different from the situations mentioned above,
the relevant shareholder will not be prevented from exercising his/her voting rights.
Nevertheless, when such vote has been decisive for the approval of the resolution, the
Company and the affected shareholder will have to evidence that the resolution is in
accordance with the Companys corporate interest (in the event the resolution is
challenged). The challenging shareholder must evidence the existence of a conflict of
interest. The appointment, removal, revocation and the liability claims from directors
are exempted from this rule, as well as any other resolutions where the conflict of
interest exclusively refers to the position of the shareholder in the Company. In such
cases, the challenging shareholders shall evidence the damage caused to the
corporate interest.
Adoption of resolutions
Resolutions shall be adopted by the majority of votes provided for in the by-laws and
shall be binding on all shareholders, including those who voted against them and those
who did not attend the Meeting.
Questions and answers
Before the Meeting ends, those present at the Meeting may raise any other issues they
see fit.
End of the General Shareholders Meeting
Subsequently, the Chairman will bring the Meeting to an end.
ARTICLE 11. MINUTES OF THE GENERAL SHAREHOLDERS MEETING AND
PUBLICATION OF ITS RESOLUTIONS
The matters debated and the resolutions adopted at General Shareholders Meetings
shall be recorded in the minutes. The minutes thus drawn up shall either be approved
at the end of the Meeting by those present, or during the following fifteen days by the
person who acted as Chairman of the Meeting and two scrutinisers appointed by the
Meeting itself, one by the majority and the other by the minority.
Minutes approved in either of the manners described above shall be enforceable as
from the date of their approval.
The minutes shall be recorded in the Companys Minutes Book, which may be formed
by loose sheets previously legalized by the Commercial Registry, on which at least the
circumstances and requirements set forth by both the Capital Companies Law and the
Regulations of the Commercial Registry shall be included.
Without prejudice to having any resolutions that must be recorded in the Commercial
Registry recorded and any legal provisions that may be applicable in relation to making
corporate resolutions public, the Company shall send the text of the resolutions passed
to the CNMV on the working day immediately following the day on which the Meeting
was held.
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Likewise, the resolutions passed and the results of the voting in the Shareholders
Meeting will be published on the Companys website, within five days following the end
of the General Shareholders Meeting.
ARTICLE 12. MAKING THE REGULATIONS OF THE GENERAL SHAREHOLDERS
MEETING PUBLIC
After approval hereof, these Regulations on the General Shareholders Meeting shall
be available through the Company's web page for the information of shareholders and
investors.
The Regulations of the General Shareholders Meeting will be notified to the CNMV.
Once the communication has been made, the Regulations will be registered with the
Commercial Registry as established by law. After registration, the Regulations of the
General Shareholders Meeting will be published by the CNMV.
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ZARDOYA OTIS, S.A.

Chapter I
PROLOGUE
ARTICLE 1. PURPOSE
These Regulations determine the principles for action of the Board of Directors of
Zardoya Otis, S.A. (the Company) and the basic rules for the organization and
operation thereof and the rules of conduct of its members.
ARTICLE 2. DISTRIBUTION
The directors of the Company are under the obligation to know, understand and comply
and obtain compliance with these Regulations.
The Board of Directors shall adopt the appropriate measures in order for the
Regulations to be distributed to the shareholders and the investor public in general.
ARTICLE 2 bis. EFFECTIVE DATE
These Regulations shall be applicable as from the first Meeting of the Board of
Directors held after they have been approved.
Chapter II
MISSION OF THE BOARD
ARTICLE 3. FUNCTIONS
Apart from matters reserved to the competency of the General Shareholders Meeting,
the Board of Directors is the Companys highest decision-making body and is assigned
the powers conferred granted by law and the Companys by-laws.
In particular, the Board of Directors shall submit to the General Shareholders' Meeting
the following decisions:
(a)
The transfer of key activities to subsidiaries that were previously carried out by
the Company itself, even when the latter retains full control of the former.
(b)
Operations which effect is equivalent to the Company's liquidation.
(c)
The directors remuneration policy as established in the Law and the by-laws.
The key nature of the activities shall be presumed when the size of the transaction
exceeds twenty five per cent of the total assets of the balance sheet.
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The Board of Directors shall assume the following faculties:

a)
Approving the strategic or business plan, the management goals and the annual
budget, the investment and financing policy, the corporate social responsibility
policy and the dividend policy.
b)
Determining the risk control and management policy, including the tax risks, and
the supervision of internal information and control systems.
c)
Determining the corporate governance policy of the Company and of the group of
which the Company is the parent entity; its organization and functioning and, in
particular, the approval and amendment of its own regulations.
d)
Approving the financial information that the Company must disclose in its
capacity as listed company.
e)
Designing corporate structure of the group of which the Company is the parent
entity.
f)
Approving the investments or operations considered strategic because of their

amount or special characteristics, or that entail a relevant tax risk, unless their
approval corresponds to the General Shareholders' Meeting.
g)
Authorizing the creation or acquisition of shares in special purpose vehicles or

entities resident in jurisdictions considered tax havens, and any other
transactions or operations of a comparable nature which complexity may impair
the transparency of the Company or its group.
h)
Approving, following a report issued by the Audit Committee, the transactions that
the Company or the companies belonging to its group may carry out with their
directors, as set out in the Capital Companies Law, or with any of their
shareholders that, individually or together with others, have a significant stake,
including shareholders represented in the Board of Directors of the Company or
of other companies belonging to the same group or all related parties. The
affected directors or those who represent or are related to the affected
shareholders shall refrain from participating in the deliberation and voting of the
relevant resolution. Only the transactions set out in the Law shall not need such
approval.
i)
Designing the Companys tax strategy.
In the event of duly justified urgent circumstances, the CEO or delegated persons, may
adopt the relevant decisions regarding the matters described in paragraphs (a) to (i).
These decisions shall be ratified at the first meeting of the Board of Directors held after
the adoption of the relevant resolution.
Likewise, the Board of Directors shall not delegate any other faculties that cannot be
delegated according to the law.
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The Board of Directors shall perform its duties with unity of purpose and independent
judgment, guided by the Company's best interest and, as such, strive to maximize its
value over time in the interest of shareholders.
It shall likewise perform its duties affording all shareholders who are in the same
position the same treatment, shall ensure that the Company abides by the laws and
regulations in its dealings with stakeholders, fulfills its obligations and contracts in good
faith, respects the customs and good practices of the sectors and territories where it
does business and upholds any additional social responsibility principles it has
subscribed to voluntarily.
Chapter III
COMPOSITION OF THE BOARD
ARTICLE 4. NUMBER OF DIRECTORS
The Board of Directors shall be formed by the number of directors determined by the
General Shareholders Meeting within the limits fixed in the Companys By-laws.
ARTICLE 5. CHARACTERISTICS AND TYPES OF DIRECTORS
5.1
Appointment proposal
The Board of Directors, using its powers to make proposals to the General
Shareholders Meeting and appoint by co-optation to cover vacancies, shall propose to
the General Shareholders Meeting, the appropriate number of directors that, according
to the circumstances which affect the Company, and taking into account the maximum
and minimum limit established in the By-laws, are the most suitable in accordance with
the recommendations of good governance to assure the representative nature and
efficient operation of the body. In particular, the Board of Directors using its powers to
make proposals to the General Shareholders Meeting and appoint by co-optation to
cover vacancies, shall seek to ensure that in the Boards composition, external or nonexecutive directors shall represent a broad majority of the Board, over executive
directors.
Likewise, the Board of Directors shall ensure that the selection process of its members
promotes gender, experience and knowledge diversity and is not implicitly biased
leading to any kind of discrimination, in particular, hindering the appointment of female
directors.
The Appointments and Remunerations Commission shall make the proposal for
appointment or re-election of independent directors.
The proposal for appointment or re-election of a director shall be, in any event,
accompanied by an explanatory report issued by the Board of Directors in which the
skills, experience and merits of the proposed candidate are valued. The report shall be
attached to the minutes of the General Shareholders Meeting or of the Board of
Directors.
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The appointment or re-election proposal of a non-independent director shall be also

preceded by a report issued by the Appointments and Remunerations Commission.
This also applies to individuals who are appointed representatives of a director that is a
legal entity. The proposal for appointment of a natural person as representative shall
be subject to the Appointments and Remunerations Commissions report.
The foregoing is applicable notwithstanding the proportional representation right
corresponding to the shareholders in accordance with the provisions of the Capital
Companies Law.
Likewise, the Board of Directors shall seek to ensure that the directors proposed, in
addition to meeting the legal requirements for the post and those of the By-laws, are
recognized as having the professional knowledge, prestige and experience appropriate
for performing their functions. In the event that a legal person is appointed, the same
conditions shall be required of the natural person who represents it.
5.2
Type of directors
Executive directors shall be those who carry out management duties in the Company
or in its group regardless of the legal connection between them. Notwithstanding this,
the directors who are senior managers or directors of companies belonging to the
group of which the Company is the parent entity shall be considered proprietary
directors in the Company.
When a director carries out management duties and, at the same time, is or represents
a significant shareholder who is represented in the Board of Directors, he shall be
considered an executive director.
The other directors of the Company shall be non-executive and may be proprietary,
independent or other external directors.
Proprietary external directors shall be (a) those who own an equity stake above or
equal to the legally determined threshold for significant stake holdings, or appointed
due to their status as shareholders, even if their stake holding does not reach such
amount; and (b) those who represent the abovementioned shareholders.
Independent external directors shall be those who are appointed because of the
professional and personal conditions, can undertake their duties without being
determined by their relations with the Company, its significant shareholders or its
officers
The following shall not be deemed, in any case, as independent external directors:
(a)
Past employees or executive directors of group companies, unless three or five

years have elapsed, respectively, from the end of such relation.
(b)
Those who receive any payments or other form of compensation from the
Company or its group other than their compensation as director, unless such
amount is not significant for the director.
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Dividends or pension supplements received by a director for prior employment

or professional services shall not be taken into account for the purposes of this
section, provided that such supplements are non-contingent, and that the
Company has no discretionary power to, without breaching its obligations,
suspend, modify or revoke their payment.
(c)
Those who are or have been during the past three years partners, in the
external auditor or the firm responsible for the audit report of the Company or
any other company within its group.
(d)
Those who are executive directors or senior officers of another company where
an executive director or senior officer of the Company is an external director.
(e)
Those having significant business dealings with the Company or any other
Company within its group or who have had such dealings in the preceding year,
either on their own account or as significant shareholder, director or senior
officer of an entity that has or has had such dealings.
Business dealings will include the provision of goods or services, including
financial services, as well as advisory or consultancy relationships.
(f)
Those who are significant shareholders, executive directors or senior officers of

an entity which receives or has received in the past three years donations from
the Company or its group.
This provision will not apply to those who are merely patrons of a foundation
receiving donations.
(g)
Those who are spouses, or partners maintaining an analogous affective

relationship, or close relatives of one of the Company's executive directors or
senior officers.
(h)
Those who have not been proposed for appointment or renewal by the
Appointments and Remunerations Commission.
(i)
Those who have been directors continuously for over 12 years.
(j)
Those who are in some of the situations listed in a), e), f) or g) above in relation
to a significant shareholder or a shareholder with Board representation. In the
case of the family relations set out in letter g), the limitation shall apply not only
in connection with the shareholder but also with his or her proprietary directors
in the invested company.
(k)
And any other circumstances which, pursuant to the applicable law, prevent a
director from qualifying as independent external director.
Proprietary directors disqualified as such due to the disposal of shares by the

shareholder they represent may only be re-elected as independent directors once the
said shareholder has sold all its shares in the Company.
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A director with shares in the Company may qualify as independent, provided that he or
she meets all the conditions stated in this article and its stake holding is not significant.
In the event that some external director can be deemed neither proprietary nor
independent, according to the foregoing, the Company shall disclose this circumstance
and the links that person maintains with the Company or its senior officers, or its
shareholders.
The Board of Directors shall explain the nature of each director to the General
Shareholders Meeting which has to appoint or ratify his or her appointment, such
determination shall be confirmed or, as the case may be, reviewed in each year's
Annual Corporate Governance Report. Such Report, in addition to the disclosures
required by law, shall also disclose the reasons for the appointment as proprietary
directors at the request of shareholders controlling less than five per cent of the
Companys share capital and explain any rejection of a formal request for a Board
place from shareholders whose stake holding is equal to or greater than that of others
who have successfully appointed a proprietary director.
Chapter IV
STRUCTURE OF THE BOARD OF DIRECTORS
ARTICLE 6. CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER OF
THE COMPANY
The Board of Directors, following a report issued by the Appointments and
Remuneration Commission, will appoint among its members a Chairman of the Board
of Directors.
The Chairman of the Board of Directors is ultimately responsible for its effective
operation. Apart from any other faculties granted by the Law, the By-laws and these
Regulations, the Chairman will have the following faculties:
(a)
To call and chair the meetings of the Board of Directors, to draw up the
agendas of the meetings and to direct the discussions and deliberations;
(b)
To chair the General Shareholders Meetings;
(c)
To ensure, with the assistance of the Secretary, that the directors receive
sufficient information on the items on the agenda in advance; and
(d)
To encourage debate and the active participation of all members, safeguarding

their rights to freely express and adopt positions.
ARTICLE 7. DEPUTY CHAIRMAN OR DEPUTY CHAIRMEN

The Board of Directors, subject to a prior report by the Appointments and
Remuneration Commission, may designate up to three Deputy Chairmen. In the event
that it is impossible for the Chairman to chair the meeting or that he/she is absent, the
oldest Deputy Chairman will replace him/her or otherwise, the other Deputy Chairman
or the oldest among the other two Deputy Chairmen.
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ARTICLE 7 BIS. THE CHIEF EXECUTIVE OFFICER

The Board of Directors delegates the normal management of the Company to its Chief
Executive Officer (CEO) and, through him/her, the management team and the
Boards activity focuses on the functions of executing the decisions of the General
Shareholders Meeting and of general supervision and definition of the Companys
policy. This permanent delegation and the appointment of any director as CEO, shall
require the favorable vote of two-thirds of the Board of Directors and shall be registered
with the Commercial Registry in order to be effective.
Likewise, the CEO and the Company shall enter into an agreement, which shall be
previously approved by the Board of Directors with the favorable vote of two-thirds of
its members. The director in question shall refrain from both attending the deliberation
and participating in the voting. The approved agreement shall be attached as an annex
to the minutes of the meeting. The agreement shall detail all the possible items that
could give rise to any remuneration due to the performance of executive functions,
including, where applicable, the compensation for the early termination of such
functions and the amounts payable by the Company as insurance or insurance
premiums. The CEO shall not receive any remuneration for the performance of
executive functions which amounts or descriptions are not foreseen in such agreement,
which shall be in accordance with the remuneration policy approved by the General
The CEO shall manage the Companys business, with the faculties delegated by the
Board of Directors, except for the sale and purchase of real estate, which shall require
in any case the approval of the Board of Directors, and any faculties which cannot be
delegated in accordance with the Law, the By-laws or these regulations.
ARTICLE 8. THE SECRETARY TO THE BOARD OF DIRECTORS
The Board of Directors, subject to a prior report by the Appointments and
Remuneration Commission, shall designate its Secretary, who need not be a director.
The same procedure applies to the removal of the Secretary.
In addition to any other faculties granted by the Law, the By-laws and these
Regulations, the Secretary will have the following faculties:
(a)
To keep the documentation of the Board of Directors, recording the

development of the meetings in the Minutes Book and certifying the resolutions
passed by the Board of Directors and their content;
(b)
To ensure that the Board of Directors actions are in line with the applicable law,
the Companys by-laws, the Regulations of the General Shareholders Meeting
and of the Board of Directors and other Company rules;
(c)
To communicate with the Spanish National Stock Market Commission

(Comisin Nacional del Mercado de Valores), unless the Board of Directors
expressly assigns this faculty to another person;
(d)
To help the Chairman of the Board of Directors with his/her functions and, in
particular, support the Chairman of the Board of Directors so that all directors
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effectively receive the relevant information to exercise their functions sufficiently

in advance.
The Secretary shall clearly express his or hers opposition when he or she considers
that a proposal submitted to the Board's approval might damage the corporate interest
or could go against the interests of shareholders which are not represented in the
Board.
When the Board makes material or reiterated decisions about which the Secretary has
expressed serious reservations, then he or she shall draw the pertinent conclusions,
and if he or she decides to resign for such causes, shall explain the reasons in the
resignation letter.
ARTICLE 9. LEGAL COUNSEL
The Legal Counsel appointed by the Board of Directors shall provide legal advice on
the legality of the resolutions passed by the Board of Directors, including the legality of
any resolution to call the General Shareholders Meeting and, if applicable, on the
legality of the deliberations when present at a meeting of the Board.
Chapter V
OPERATION OF THE BOARD
ARTICLE 10. MEETINGS OF THE BOARD OF DIRECTORS
The Board of Directors shall meet with the frequency required to properly perform its
duties, in accordance with the calendar and agendas set out at the beginning of the
year, and it shall meet within the first three months of each fiscal year in order to draw
up the annual accounts, the management report and the proposal for the application of
the earnings of the previous year, and at any time it must convene a General
Shareholders Meeting. In any case, the Board of Directors shall meet at least
quarterly.
Meetings of the Board of Directors shall be called by letter, e-mail, telegram or fax sent
to each one of the directors, at the address previously provided for this purpose, with at
least ten days notice before the date fixed for the meeting, and shall include the
agenda of the meeting. Therefore, unless the Board of Directors is constituted or is
exceptionally called for urgency reasons, the directors shall receive, sufficiently in
advance, all the necessary information to be able to deliberate and adopt resolutions
regarding the matters to be discussed. The Chairman of the Board of Directors, with
the support of the Secretary, shall ensure that this faculty is fully complied with.
A meeting of the Board of Directors not called in advance shall be valid if all the
directors are present or represented and agree to hold the meeting.
The Chairman may call Board meetings as many times as he or she considers it
convenient, establishing its agenda. It will be compulsory to call a meeting if it is
requested by one third of the directors. In that event, following the request to the
Chairman, if the Chairman, without a reasonable cause has not called the meeting
within a term of one month, the aforementioned directors representing at least one third
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of the members of the Board may call it, establishing its agenda so as to hold the
meeting in the municipality where the registered address of the Company is located.
Without prejudice of the preceding paragraph, the Board of Directors shall meet at the
Companys registered address or at such other place, either in Spain or abroad, as is
designated in the call to the meeting.
The Board meeting may as well be held simultaneously in several places, connected
by multi-conference systems which permit the recognition and identification of the
attendees, permanent communication among the attendees regardless of their
location, and participation in discussion and the casting of votes, all in real time.
Attendees at any of such places shall be deemed to have attended the same meeting
for all purposes relating to the Board of Directors. The meeting shall be deemed to
have been held where the majority of the directors are located and, if they are located
in different places in equal numbers, where the director chairing the meeting is located.
The Secretary of the Board shall identify, under his responsibility, the attendees and
ensure that the provisions of this paragraph are complied with.
As an exception, if no director opposes, resolutions may be passed in writing. In this
case, the directors may deliver their votes and the considerations they wish to appear
in the minutes using the same means mentioned above to the Chairman (or the
Secretary). Resolutions adopted by this procedure shall be recorded in minutes
prepared pursuant to the law.
ARTICLE 11. MEETING PROCEDURES
In order for there to be quorum at a meeting of the Board of Directors, half plus one of
the number of directors on the Board must be present or represented at the meeting.
Each director may confer the power to represent him to another director and there is no
limit to the number of other directors that a director may represent at a Board meeting.
Non-executive directors may only delegate their representation to other non-executive
directors. The power to represent another director may be conferred using any written
means, a telegram, e-mail or fax sent to the Chairman being valid. Each director
present or duly represented shall have one vote.
Resolutions of the Board of Directors shall be adopted by an absolute majority of all
directors present or represented at the meeting.
The Chairman shall organize the debate, seeking to ensure and encouraging the
participation of all the directors in the deliberations of the corporate body, and shall put
the matters to a vote when he or she deems them to have been sufficiently debated.
When directors or the Secretary express their concerns or opposition because they
consider that a proposal submitted for the Board's approval might damage the
corporate interest and such concerns are not resolved at the meeting, the person
expressing them can request its recording in the minutes of the meeting.
Independent external directors and other directors which are not affected by a conflict
of interest shall express their opposition to any decision which could go against the
interests of the shareholders which are not represented at the Board.
ARTICLE 12. FORMATION OF COMMITTEES
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The Board of Directors may form any Committees or Commissions it deems convenient
in order to carry out its duties, determining their composition, appointing their members
and setting out the functions of each of their members. In particular, the Board of
Directors shall form an Audit Committee and an Appointments and Remuneration
Commission from among its members.
A)
The Audit Committee
1.
Composition
The Board of Directors shall form a permanent Audit Committee.

The Audit Committee shall be formed by five directors, appointed by the Board of
Directors from among the non-executive directors. Its members shall include, at least,
two independent directors, one of whom is to be appointed taking into account his/her
knowledge and experience in accounting or auditing matters or both.
The Board of Directors shall likewise appoint a Chairman from among its members and
a Secretary, who need not be a director, at the proposal of the Appointments and
Remuneration Commission. The Chairman of the Audit Committee shall be appointed
by the Board of Directors from among its independent members and shall be
substituted every four years. Directors may be re-elected one year following their
removal.
The members of the Audit Committee, especially its Chairman, must have knowledge
and experience in accounting, auditing or risk management.
The directors who form part of the Audit Committee shall hold office while they remain
in office as directors of the Company and maintain the status of external directors,
unless the Board of Directors resolves otherwise.
The appointment, re-election and removal from office of the directors who form the
Committee shall be governed by the resolutions of the board of directors.
The directors forming part of the Audit Committee who are re-elected as directors of
the Company in a resolution adopted by the General Shareholders Meeting shall
continue to hold office on the Committee without the need to be re-elected thereto,
unless the Board of Directors resolves otherwise.
2.
Functions
The Audit Committee shall have the following functions:

(a)
To report, through its Chairman, to the General Shareholders Meeting with

respect to matters relating to its functions raised thereat by the shareholders.
(b)
To propose to the Board of Directors, for submission to the General

Shareholders Meeting, the recommendations for the selection, appointment,
reappointment and removal of the external account auditor and its engagement
conditions and to regularly gather from it information related to the audit plan
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and its execution, as well as to preserve its independence in the exercise of its
functions.
(c)
To supervise the Companys internal audit services, the risk management

systems, including tax risks and, in particular: (i) to monitor the independence
and efficacy in its functions of the internal audit services; (ii) to propose the
selection, appointment, reappointment and removal of the head of internal audit
services; (iii) to propose the budget of said services; (iv) to receive regular
report-backs on their activities; (v) to review the annual work program and the
yearly activities report of the internal audit services; (vi) to be informed of any
incidents arising during the implementation of the internal audit services yearly
work program; (vii) to verify that senior management acts in accordance with
the conclusions and recommendations contained in their reports; and (viii) to
discuss any significant weaknesses detected in the internal audit system in the
course of the audit with the account auditors.
(d)
To be informed of and to monitor the mandatory financial information of the

Company and, where appropriate, the group, checking for compliance with legal
provisions, the accurate demarcation of the consolidated group and the correct
application of accounting principles, ensuring the integrity thereof.
(e)
To review internal control and risk management systems on a regular basis, so

that main risks are properly identified, managed and disclosed. In particular,
control and risk management policy shall identify, at least:
(f)
(i)
the different types of risk (operational, technological, financial, legal,

reputational, etc.) the Company is exposed to, including contingent
liabilities and other off-balance sheet risks among the financial and
economic risks;
(ii)
the determination of the risk level the Company sees as acceptable;
(iii)
the measures in place to mitigate the impact of the identified risk events,
should they occur; and
(iv)
the internal reporting and control systems which will be used to control
and manage said risks, including the aforementioned contingent
liabilities and off-balance sheet risks.
To be in contact with the external Account Auditor in order to receive

information on any matters related to the process of performing the account
audit, such as the progress and findings of the audit program, to maintain with
the external Account Auditor those other communications required by the
account auditing legislation and technical audit rules and check that the
Companys senior management is acting in accordance with its
recommendations. Likewise, to receive information on any issues which may
place the external Account Auditors independence at risk for its review by the
Committee. To this effect:
(i)
the Company shall notify any change of auditor to the Spanish National
Stock Market Commission (Comisin Nacional del Mercado de Valores,
the) as a significant event, accompanied by a statement of any
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disagreements that may have arisen with the outgoing auditor and, if
such disagreements exist, the contents thereof;
(ii)
the Audit Committee shall ensure that the Company and the external
Account Auditor respect the current regulations on the provision of nonaudit services, the limits on the concentration of the auditor's business
and, in general, the other requirements designed to safeguard auditors'
independence; and
(iii)
the Company shall establish appropriate contacts with the account

auditor to receive information on any questions which might place the
latters independence at risk, which will be examined by the Audit
Committee, and any other issues related to the process of conducting
the account audit, together with the matters provided for in the account
auditing legislation and auditing rules. In particular, the Audit Committee
will receive from the account auditors, on an annual basis, written
confirmation of their independence in relation to the Company or any
companies that may be related directly or indirectly thereto, together with
confirmation of the additional services of any nature rendered to said
companies and the corresponding fees received from these entities by
the auditors or by persons or entities related to the auditors in
accordance with the provisions of the Account Auditing Law.
(iv)
the Audit Committee shall investigate the issues giving rise to the
resignation of any external Account Auditor; and
(v)
the Audit Committee shall issue an annual report, prior to the issue of
the audit report, expressing an opinion on the independence of the
account auditors. Said report shall also always make a pronouncement
on the additional services to which point (iii) above refers.
(g)
To urge the group auditor to take on the auditing of all the groups companies.
(h)
To establish and supervise a mechanism whereby employees can report,

confidentially and, if seen fit, anonymously, any potentially serious irregularities
that they note within the Company, especially financial and accounting
irregularities. The Chairman of the Audit Committee shall inform the Board of
Directors on any reports received at the first Board meeting following receipt
thereof.
(i)
To supervise compliance with the internal codes of conduct and corporate

governance rules and recommendations in force at any given moment.
(j)
To inform the Board of Directors, before the decision-making, on all the issues
foreseen in the Law, the Companys by-laws and these Regulations and, in
particular, on the following issues:
(i)
the financial information that the Company must periodically disclose.

The Committee shall ensure that interim statements are drawn up under
the same accounting principles as the annual statements and, to this
end, may ask the external auditor to conduct a limited review;
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(ii)
the creation or acquisition of shares in special purpose vehicles or

entities resident in countries or territories considered tax havens, and
any other transactions or operations of an analogous nature whose
complexity may detract from the transparency of the group; and
(iii)
related-party transactions.
(k)
Any others that may be attributed to them by the by-laws, these Regulations,
the Board of Directors or the law.
3.
Rules of operation
In the performance of its activities, the Audit Committee shall be governed by the
following rules of operation:
(a)
The Audit Committee shall meet at least quarterly and whenever the Chairman
considers convenient or at least two members of the Committee so request.
(b)
Meetings of the Audit Committee will reach a quorum when a majority of the
members are present or represented. Its decisions shall likewise be adopted by
a majority of the members.
(c)
The Chief Executive Officer shall provide the Audit Committee with the
(d)
The Audit Committee shall have free access to any kind of information or
documentation held by or available to the Company that it considers necessary
in order to perform its duties.
(e)
The Committee may require the presence at any of its meetings of any
employee or officer (and may order them to appear without the presence of any
other officer, in which case, their attendance shall be requested through the
General Manager), any executive director, the external account auditor and/or
the legal advisor to the Board of Directors.
(f)
Minutes of Audit Committee meetings shall be taken and a copy shall be sent to
all the members of the Board and to the Board of Directors, sending the full
contents of the minutes of the Committee meetings. Furthermore, the Chairman
of the Audit Committee shall, if applicable, report on any decisions and/or
significant events that may have occurred at the Committee meetings at the first
Board meeting to take place after the Committee meeting in question.
(g)
The Committee shall review the financial information that is sent on a quarterly
basis to the CNMV.
(h)
The Board of Directors shall discuss the proposals and/or reports presented by
the Audit Committee.
In the absence of any specific rule, the provisions of these Regulations on the
operation of the Board of Directors shall be applicable to the Audit Committee to the
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extent that they are not incompatible with the nature thereof, in particular, the rules on
calling the meetings, delegating another director as a representative, universal
meetings, written ballots without holding a meeting, the persons acting as chairman
and secretary of the meetings and the approval of the minutes thereof.
The Board of Directors shall seek to present the annual statements to the General
Shareholders Meeting without reservations or qualifications in the audit report, and in
the exceptional case that these may be included, the Chairman of the Audit Committee
and the auditors shall give a clear explanation to the shareholders on the content and
extent of said reservations and qualifications.
B)
The Appointments and Remuneration Commission
1.
Composition
The Board of Directors shall form a permanent Appointments and Remuneration

Commission.
The Appointments and Remuneration Commission shall be formed by five directors,
appointed by the Board of Directors from among the non-executive directors. At least
two of its members shall be independent. The Board of Directors shall likewise appoint
a Chairman from among the members, who shall in any case be independent, and a
Secretary, who need not be a director, at the proposal of the Appointments and
Remuneration Commission itself.
The Board of Directors shall try to ensure that the directors who form part of the
Appointments and Remuneration Commission have appropriate knowledge, capacity
and experience for the functions they are to perform.
The directors who form part of the Appointments and Remuneration Commission shall
hold office while they remain in office as directors of the Company and maintain the
status of external directors, unless the Board of Directors resolves otherwise.
The appointment, re-election and removal from office of the directors who form the
Committee shall be governed by the resolutions of the Board of Directors.
Directors forming part of the Appointments and Remuneration Commission who are reelected as directors of the Company in a resolution adopted by the General
Shareholders Meeting shall continue to hold office on the Commission without the
need to be re-elected thereto, unless the Board of Directors resolves otherwise.
2.
Functions
The Appointments and Remuneration Commission shall have the following functions:
(a)
To assess the skills, knowledge and experience necessary on the Board and,
consequently, to define the functions and abilities necessary in the candidates
who are to cover any vacancies and assess the time and effort required for
them to carry out their duties well.
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(b)
To establish a representation target for the gender that is less represented in

the Board of Directors and prepare guidelines on how to reach such target.
(c)
To present to the Board of Directors the proposals of appointment by cooptation of independent directors or their submission to the resolution General
Shareholders Meeting, as well as the proposals for the re-election or removal
of directors by the General Shareholders Meeting.
(d)
To inform of the proposals of the appointment by co-optation of the other

directors or for their submission to the General Shareholders Meeting, as well
as the re-election or removal proposals of such directors by the General
(e)
To report on proposals for designating the internal positions to be held by the

members of the Board of Directors.
(f)
To propose the members of each Committee to the Board of Directors.
(g)
To inform of the appointment and removal proposals of the senior managers

and of the main terms and conditions of their agreements.
(h)
To examine or organize, in the manner seen fit, the succession of the Chairman
and the chief executive and, if applicable, to make proposals to the Board so
that said succession takes place in an orderly and well-planned manner.
(i)
To ensure that, when filling new vacancies or appointing new directors, the
selection procedures are not marred by implicit biases that may entail any kind
of discrimination and to inform to the Board of Directors on gender diversity
issues.
(j)
To propose to the Board of Directors the directors remuneration policy, as well

as the remuneration policy applicable to the general managers and those who
may perform senior management functions and report directly to the Board of
Directors, executive commissions or the CEO. The individual remuneration and
other hiring conditions of the executive directors shall be also proposed.
(k)
Any others that may be attributed to them by the by-laws, these Regulations,
the Board of Directors or the law.
The Appointments and Remuneration Commission shall consult the Chairman and the
Companys chief executive, especially in relation to issues concerning the executive
directors.
Any director may request the Appointments and Remuneration Commission to consider
potential candidates to cover vacancies on the Board, so that it may decide on their
suitability.
3.
Rules of operation
In the performance of its activities, the Appointments and Remuneration Commission

shall be governed by the following rules of operation:
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(a)
The Appointments and Remuneration Commission shall meet before any Board
of Directors meeting at which a proposal is to be put to the General
Shareholders Meeting for the appointment, removal from office, re-election or
ratification of a director and before any Board of Directors meeting at which it is
planned to co-opt a director to cover a vacancy. The Appointments and
Remuneration Commission shall likewise meet whenever the Chairman
considers it necessary or when at least two members of the Commission so
request.
(b)
Meetings of the Appointments and Remuneration Commission will reach a

quorum when a majority of the members are present or represented. Its
decisions shall likewise be adopted by a majority of the members.
(c)
The Chief Executive Officer shall provide the Appointments and Remuneration
Commission with the information it requires to perform its duties in relation to
the directors and senior management of the principal companies in which
interests are held.
(d)
The Commission shall have free access to any kind of information or

documentation held by or available to the Company that it considers necessary
in order to perform its duties.
(e)
The Commission may require the collaboration of any director, member of

senior management or employee of the Company and/or its group to enable it
to better perform its functions.
(f)
Minutes of Appointments and Remuneration Commission meetings shall be

taken and a copy shall be sent to all the members of the Board and to the Board
of Directors, sending the full contents of the minutes of the Committee
meetings. Furthermore, the Chairman of the Appointments and Remuneration
Commission shall, if applicable, report on any decisions and/or significant
events that may have occurred at the Committee meetings at the first Board
meeting to take place after the Commission meeting in question.
In the absence of any specific rule, the provisions of these Regulations on the
operation of the Board of Directors shall be applicable to the Appointments and
Remuneration Commission to the extent that they are not incompatible with the nature
thereof, in particular, the rules on calling the meetings, delegating another director as a
representative, universal meetings, written ballots without holding a meeting, the
persons acting as chairman and secretary of the meetings and the approval of the
minutes thereof.
ARTICLE 12 BIS. PERFORMANCE ASSESSMENT
The Board of Directors shall carry out an annual assessment of its own performance
and that of its committees and propose, in view of the result, an action plan that
improves any shortcomings detected in accordance with the Law.
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Chapter VI
APPOINTMENT AND RESIGNATION OF DIRECTORS
ARTICLE 13. APPOINTMENT OF DIRECTORS
The directors shall be appointed by the General Shareholders Meeting or,
provisionally, by the Board of Directors pursuant to the provisions contained in the
Capital Companies Law and the by-laws.
In relation to the appointment by co-optation, the appointed director need not be a
shareholder. If there is a vacancy once the General Shareholders Meeting is called
and before it is held, the Board of Directors may appoint a director until the next
General Shareholders Meeting is held.
No alternate directors shall be appointed.
The Board of Directors shall endeavor to ensure that, within the scope of their
respective competencies, the candidates are chosen from among persons of
recognized competence and experience.
The Board of Directors shall organize orientation programs for new directors to
acquaint them rapidly with the Company and its corporate governance rules. Directors
shall also be offered updating programs when circumstances so advise.
ARTICLE 14. TERM OF OFFICE
Directors shall hold office for an initial term of four years, pursuant to the provisions of
the by-laws, and may be re-elected, once or more times, for successive periods of up
to four years.
Directors appointed by co-option shall hold office until the date on which the first
General Shareholders Meeting after their appointment is held.
ARTICLE 15. RESIGNATION OF DIRECTORS
Directors shall leave office when the term for which they were appointed has elapsed
or when the General Shareholders Meeting so decides using the attributions conferred
on it by law or the by-laws.
Directors must place their post at the disposal of the Board of Directors and, if the latter
considers appropriate, resign in the following cases:
(a)
When they are affected by any of the circumstances of incompatibility or

prohibition legally provided for.
(b)
When they may harm the Company's name or reputation.
(c)
When they have been charged, prosecuted, in the process of trial in an ordinary
criminal proceedings or found guilty in summary criminal proceedings for any
17/23
serious crime, in particular, any of the crimes stated in article 213 of Capital
Companies Law.
(d)
When they have been seriously admonished by the Audit Committee or

because they have infringed their duties as directors.
(e)
When a external proprietary director transfers his or her shareholding in the

Company or when the shareholder which proposed his appointment to the
Company sells its entire shareholding interest or reduces it to a level that
requires the reduction or removal of its proprietary directors
Members of any Committees or Commissions that may exist shall automatically resign
when they cease to be directors.
ARTICLE 16. ABSTENTION AND SECRET BALLOT
Pursuant to the provisions of these Regulations, directors affected by proposals for
appointment, re-election or removal from office shall refrain from participating in the
deliberations and ballots that involve them.
All the ballots of the Board of Directors that concern the appointment, re-election or
removal from office shall be secret.
Chapter VII
INFORMATION AVAILABLE TO DIRECTORS
ARTICLE 17. RIGHTS TO INFORMATION, INSPECTION AND ADVICE
A director has the obligation to request and the right to obtain, with the widest powers,
any appropriate and necessary information and advice that he/she may require on any
aspect of the Company, provided that the performance of his functions so requires. The
right to information extends to subsidiary companies, be they national or foreign, and
will be channeled through the Chairman, who shall attend to the directors requests for
information by providing the information directly, offering him/her the appropriate
contacts or arranging any measures that may be necessary for the examination
requested.
In order to be assisted in the performance of his duties, any director may request the
hiring of legal, accounting, technical, financial, commercial or other expert advisors,
whose services shall be paid for by the Company.
The assignment must deal with specific issues of certain significance and complexity
arising during the performance of the directors duties.
The request for an expert to be hired shall be done through the Chairman or the
Secretary of the Board of Directors, who may subject it to the prior approval of the
Board of Directors; such approval may be denied in well-founded circumstances,
including the following:
18/23
(a)
That it is not necessary for the proper performance of the duties entrusted to the
directors.
(b)
That the cost thereof is not reasonable in light of the significance of the issues
and the Companys assets and income.
(c)
That the technical assistance sought may be adequately provided by the

Companys or its groups own experts and technical personnel.
(d)
That it may entail a risk to the confidentiality of the information that must be
made available to the expert.
The Audit Committee and Appointments and Remuneration Commission may also
engage external advisors, when they consider that this is necessary for the
performance of its duties.
The Chairman may temporarily and exceptionally restrict access to certain information,
informing the Board of Directors of this decision.
Chapter VIII
REMUNERATION OF THE DIRECTORS
ARTICLE 18. REMUNERATION OF THE DIRECTORS
Holding office as a director shall be remunerated pursuant to the Company by-laws and
the Capital Companies Law.
External directors' remuneration shall be sufficient to compensate them for the
dedication, abilities and responsibilities that the office entails, but shall not be so high
as to compromise their independence.
ARTICLE 18 BIS. ANNUAL REPORT ON DIRECTORS REMUNERATION
The Board of Directors shall prepare and publish annually a report on directors
remuneration, including the remuneration received or to be received for their condition
of directors and, if applicable, for the performance of executive duties. The content and
structure of the aforementioned report will be determined by the Law or regulations
enacted by the relevant authority.
Such report shall include complete, clear and understandable information regarding the
directors remuneration policy applicable to the current fiscal year. It shall also include a
global summary regarding the implementation of the remuneration policy during the
closed fiscal year, as well as the detail of the individual remuneration accrued for any
item by each of the directors in such fiscal year.
The report will be voted, on a consultative basis and as a separate point of the Agenda,
by the General Shareholders Meeting and will be published as a relevant fact by the
Company simultaneously with the publication of the annual corporate governance
report.
19/23
Chapter IX
DUTIES OF DIRECTORS
ARTICLE 19. GENERAL DUTIES OF A DIRECTOR
The directors shall comply with any duties set out in the Law and, in particular, with the
following:
19.1
Duty of care
In performing their duties, directors shall hold office and comply with the duties set out
by the laws and the Companys by-laws with the diligence of a good businessman,
considering the nature of the position and the functions attributed to them.
To that end, directors shall work with suitable dedication and shall adopt the necessary
measures to effectively manage and control the Company.
In performing their duties, directors have the obligation to request and the right to
receive from the Company the appropriate and necessary information to be able to
fulfill their duties.
19.2
Business judgment protection
Within the scope of the strategic and business decisions, subject to business judgment,
the standard of diligence of a good businessman is considered reached when a
director acts in good faith without any personal interest in the matter at hand, having
enough information and in accordance with an adequate decision-making process.
Decisions affecting other directors and related persons personally and, in particular,
decisions aimed at authorizing the transactions provided for in article 230 of the Capital
Companies Law, will not fall within the scope of business judgment.
19.3
Duty of loyalty
Directors shall exercise their duties with the loyalty of a faithful representative, acting in
good faith and in the Companys best interest. Breaching the duty of loyalty shall result
not only the obligation to compensate the damage caused to the Companys equity but
also to return any unjust enrichment obtained by the relevant director.
In particular, the directors shall:
(a)
Refrain from exercising their faculties for purposes other than those for which
they were granted.
(b)
Keep secret any information, details, reports or data to which they have had
access during the performance of their duties, even when they no longer hold
office, except when this is allowed or required by law.
(c)
Refrain from participating in the deliberation or voting of the resolutions in which

they or any related party has a direct or indirect conflict of interest. Resolutions
20/23
or decisions that affect them in their capacity as directors, such as their

appointment or removal from the Board of Directors or other similar matters, are
exempt from this obligation.
(d)
Carry out their duties in accordance with the principle of personal responsibility
with freedom to decide and independence from instructions or links with third
parties.
(e)
Carry out any required measure to avoid situations in which their interests,
whether personal or of third parties, may be in conflict with the Companys
corporate interest and with their duties.
19.4
Duty to avoid conflicts of interest
The duty to avoid conflicts of interest referred to in paragraph (e), obliges directors
(without prejudice to the exemptions provided for in the Capital Companies Law) to
refrain from:
(a)
Carrying out any transaction with the Company, unless it is an ordinary

transaction, carried out in standard conditions for customers and those which
are inconsequential. These include transactions which information is not
necessary to reflect the true and fair image of the Companys status, its
financial situation and earnings.
(b)
Using the Companys name or their capacity as directors to unlawfully influence

private transactions.
(c)
Using the Companys assets, including the Companys confidential information,

for private purposes.
(d)
Taking advantage of Companys business opportunities.
(e)
Gaining advantage or obtaining remuneration from third parties other than the
Company and its group as a result of the performance of their position, except
for courtesy gifts.
(f)
Developing activities on its own behalf or as an employee that effectively,

currently or potentially compete with the Company or that, in any other way, put
them in a permanent conflict of interest with the Company.
(g) The above prohibitions also apply in the event that the beneficiary of the acts or
activities is a related party to the director.
(h) In any case, directors shall inform the other directors and the Board of Directors
of any direct or indirect conflict of interest that they or related parties may have
with the Company.
The situations of conflicts of interest in which any of the directors may be involved,
shall be recorded in the Companys Report.
19.5
Other duties
21/23
Likewise, the directors shall:

(a)
Obtain information on and properly prepare the Board of Directors meetings

and, if applicable, the Committee or Committees on which he/she sits.
(b)
Attend the meetings of the corporate bodies of which he/she forms part and
actively participate in the deliberations, so that his/her criteria make an efficient
contribution to the decision-making process. If, for a justified reason, he/she is
unable to attend the meetings to which he/she has been called, he/she must
instruct the director who, as the case may be, represents him/her, although
non-executive directors shall only be able to delegate their representation to
other non-executive directors.
(c)
Perform any specific task entrusted by the Board of Directors that is reasonably
included in their commitment to the Company.
(d)
Refrain from performing, or suggesting that anyone performs, transactions with

securities of the Company itself or subsidiaries, associated or related
companies which he/she has, due to his position as a director, privileged or
reserved information, until such information is made public, and complying in
any event with the Company's Internal Code of Conduct on matters related to
the securities market.
(e)
Leave any meeting of any corporate body of which he or she forms part when
deliberations are held on questions in which, in the opinion of said corporate
body or the Board of Directors, holds direct or indirect personal interests.
(f)
Communicate, as soon as possible, to the Board any circumstance that might

harm the Companys name or reputation with particular mention of any criminal
charges brought against them and the progress of any subsequent trial, and, as
the case may be, to resign.
Chapter X
RELATIONS OF THE BOARD
ARTICLE 20. RELATIONS WITH THE MARKETS

The Board of Directors shall ensure prompt compliance with current rules on the
notification of relevant information.
The Board of Directors shall adopt the measures required to ensure that the quarterly,
six-monthly and annual information are prepared, after a prior report by the Audit
Committee, pursuant to the same principles, criteria and professional practices with
which the annual accounts are drawn up and is as reliable as the latter.
ARTICLE 21. RELATIONS WITH THE AUDITORS
These relations shall be conducted through the Audit Committee. The Board of
Directors shall inform publicly of the global fees that the Company has paid to the audit
firm, distinguishing between those relating to account auditing and those relating to
22/23
other services provided, and, in the Notes to the annual accounts, must provide a
breakdown of payments to the account auditors, together with payments made to any
company belonging to the same group of companies as the account auditor, or any
other company to which the auditor is related due to common ownership, management
or control.
Chapter XI
FINAL PROVISIONS
ARTICLE 22. SUBMISSION TO THESE REGULATIONS
Irrespective of the compulsory nature of these Regulations due to their approval by the
Board of Directors of the Company, executing the self-regulation function attributed to it
by law, the acceptance and performance of the position of director is deemed to also
imply the individual voluntary acceptance of each and every one of the rules of these
Regulations.
ARTICLE 23. PUBLICATION OF THE REGULATIONS
After approval hereof, the Regulations of the Board of Directors shall be available
through the Companys web page.
The Regulations of the Board of Directors will be notified to the CNMV. Once such
communication has been carried out, the Regulations shall be registered with the
Commercial Registry, pursuant to the general rules. After registration, these
Regulations of the Board of Directors will be published by the CNMV.
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Annual Report 2014: Zardoya Otis S.A

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Annual Report 2014: Zardoya Otis S.A

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ZARDOYA OTIS S.A.

Stock Market Data

Management Report on the Zardoya Otis Group

Other Relevant Information

Consolidated Financial Information

Board of Directors Committee & Commission

General Meeting of Shareholders

Financial Statements of the Last Five Years

Annual Corporate Governance Report

Report of the Auditors (FIICS)

Annual Report on Director Compensation

Consolidated Text of the By-laws

Regulations of the General Shareholders'

Zardoya Otis, s.a.

Zardoya Otis S.A.

Key Data at November 30

(Fiscal year end)

% variance over prior year

Profit before tax

Profit before tax

Capital y Reserves (**)

(*) Restated figures in application of NIC 19-R

% variance over prior year

(*) Restated figures in application of NIC 19-R

% variance over prior year

Net Exports (without Portugal)

% variance over prior year

% variance over prior year

Units under maintenance

284,418 284,940 270,082 268,915 268,147

% variance over prior year

Stock Market data at December 31

PROFIT PER SHARE

Profit after tax

DIVIDEND PER SHARE*

Dividend per share

(*) Restated figures in application of NIC 19-R

PRICE PER SHARE

ANNUAL YIELD OF ONE SHARE (%) (*)

Market capitalization (millions)

STOCK MARKET RATIOS

PER (Price/net profit: nmber of times)

STOCK MARKET RATIOS

Zardoya Otis, S.A.

The consolidated profit before tax at the 2014 year

The total consolidated sales figure

The contribution of the 2014 sales of

ZARDOYA OTIS S.A.

Work completed: The value of work completed

At the end of 2014, Zardoya Otis Group employees

Backlog of unfilled orders, the backlog of unfilled

Dividends and distribution of share Premium in 2014 were:

Charged to Shares entitled

1st a cta. 2014

2nd a cta. 2014

3rd a cta. 2014

At November 30, 2014, interim dividends were

TOTAL DIVIDENDS PAID IN 2014

Dividends and partial distribution of share premium

Profit after Tax vs. Dividends Paid in the calendar year

(*) Before Extraordinary Results

The capital increase approved by the General

Once the Share Capital increase has been